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One government strategy to provide for economic stability and encourage economic growth is to provide tax reductions or tax incentives for individuals and businesses. An alternative approach is to increase government spending to accomplish these goals.Which strategy do you believe would be more effective in the short term for accomplishing these goals? Which strategy do you believe would be more effective in the long term?
Assume that the two rival "Super Stores", Walmart and Target both adopt price matching rules. If people can discover lower advertised values on any items they sell, then they will match the lower prices.
What monetary policies do you think caused the crisis and what were the effects of the policies implemented in reaction to the crisis
Evaluate this statement: " profit-maximizing firms lack an incentive to provide job safety, and consequently, the federal government must intervene legislatively to protect workers against unsafe working conditions that will surely result."
Assume that the The World Steel industry wants to expand and that its only option is a merger. Now the industry is confronted with government regulations to oversee the merger.
market power may produce a level of output greater than its profit maximizing level of output to gain market share and block entry of new firms. What challenges does the firm face to sustain this practice?
An article in Business Week warned of the dangers of deflation as the collapse of numerous Asian economies was creating worries that Asia might try to “ export its way out of trouble”.
What are the monopolist's profit-maximizing output and price and what is the resulting deadweight loss relative to the competitive outcome?
What is the invisible hand principle Does it indicate that self-interset behavior within markets will result in actions that are beneficial to others What conditions are necessary for the invisible hand to work well? Why are these conditions impor..
A project proposal for a new product will require a buildup of $50,000 of inventory in year 0 before sales are started. Associated with this, accounts payable will also increase by $20,000 in year 0.
Assume the economy starts at equilibrium and the mpc=.8. What would be the effect of the $500 increase in taxes (once all the rounds of the mulyiplier process are complete) in relation to equilibrium output?
Derive the Marshallian demand functions and the indirect utility function, and confirm that Roy's identity holds.
Py =4 and Uo is the maximal level utility when Px =5, Py =4 and I =100. find the the compensated demand curve (or of Hicks) and draw it on the same graph. for what value of Px the two curves will cut? what is the elasticity of compensated demand w..
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