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Which product is more price elastic - coffee sold in a cafe or electricity (assume limited excess capacity)?
What does Friedman mean when he says the Earth is becomming "hot, flat, and crowded?" Describe three of the key problems that Friedman identifies in the book and explin why they re important.
What single sum of money at the end of the third year is equivalent to a payment series of $10,000 the first year, $9,000 the second year... down to 6,000 the 5th year? Assume the money has a time value of 10%/year compounded annually.
Suppose as a manager of a profitable department store you are confronted with a pricing problem. You have two types of customers: a high-end type that are willing to pay a price of $25 for a pair of Levis Jeans, and a low-end type customer that are w..
How would this change the consumer and producer surplus? Suppose a price floor of $16 was imposed. How would this change the consumer and producer surplus?
Consider the following statement. "Winter ice storms that sometimes hit Chicago are good for the economy. They create many jobs to remove downed limbs and replace trees and bushes." Do you agree that ice storms are a net benefit to the economy? To an..
One explanation for China's rapid economic growth during the past several decades is its expansion of policies that encourage "technology transfer." Analyze this change using a Solow diagram. What happens to the economy over time? Draw a graph showin..
The total value added in the production of a final good a. exceeds the price of the final good b. equals the price of the final good c. exceeds the total payments made to owners of productive resources used in the production
A man is planning to retire in 20 years. He can deposit money for his retirement at 6% compounded monthly. It is estimated that the future general inflation rate will be 4% compounded annually. What deposit must be made each month until the man retir..
At the end of 2012 the prestigious Rolex watch manufacturer had in inventory of watches worth $725 dollars. In 2013, Rolex produced $333 worth of watches and sold $260. What was the change in inventories in 2013? (hint: careful with the signs, rememb..
Describe how the following statements relate to the AD–AS model:
List a few major challenges YOU THINK would impact the future economic well being of the United States. Explain why these are crucial challenges and how they can be overcome. Your response MUST make references to short term fluctuations as well as lo..
How do firms attain equilibrium when there is monopsony in factor market and perfect competition in product market.
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