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Explain the short-run impact of each of the following.A discovery that makes cold fusion a reality, greatly reducing the cost of producing energyAn increase in the payroll tax
Suppose that virtually everyone in the United States decides to take life a little easier, and the length of the average workweek falls by 25%. How will that affect GDP? Per capita GDP? How will it affect economic welfare?
Explain why a change in one component of aggregate demand will cause the aggregate demand curve to shift by a multiple of the initial change.
Atlantis will lose its patent protection, and analysts expect economic profit to be zero after five years and which is also the maximum price investors would be willing to pay for Atlantis Company.
A competitive market is intended to result in improved efficiency, though it will not necessarily improve equity. That is, a competitive market might encourage efficient production but may not necessarily result in a redistribution of wealth
Compute the formula for Bob's indi erence curves by setting U(C, P) = k for some constant, k, and solving for P as a function of C and explain what this term means economically, and what it tells us about Bob's preferences, and about his willingnes..
Compute the marginal profit function and what is the profit maximizing price, what is the market demand function and what is each firm's supply function?
Suppose a firm produces bicycles. Will the firm's accounting statement reflecte the opportunity cost of the bicycles Why or why not What cost would an accounting statement revelat Should current decisions be based on accounting cost
Draw demand, marginal revenue and marginal cost curves. Calculate and show how much this firm will sell and what they will charge. Calculate producer surplus with monopoly and the consumer surplus with monopoly. How much would be produced if this wa..
This is not a goal of government programs To enforce private property rights ,To prohibit natural monopolies or else.
Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the money multiplier.Suppose the central bank conducts an unusually large open market purchase of bonds held by banks of 1400 billion due to a sharp contraction i..
Use an indifference curve-budget line analysis to depict the situations, prior to the ban on smoking, of a student who smoked on campus, and of a student who did not smoke.
How does your decision to invest in a college degree add to your capital stock Show this on your projected production possibilities frontier for ten years from now compared to your production possibilities curve without a college degree
State the commodity in which each country has absolute advantage and identify the commodity of comparative advantage for each country
Assume that the book printing industry is competitive and starts in a long-run equilibrium. Make a diagram describing the typical company in the industry.
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