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Why do you suppose the federal government gives special treatment to owners of fertile farmland rather than, say, automobile mechanics?
Use the theory of rational ignorance to explain why the ethanol subsidy is only 51 cents per gallon rather than, say, $5 per gallon.
What do you think it should have been a good idea for these airlines to cut their frequent-flyer programs in order to earn higher profits.
Suppose that Investment spending of 420 is added (I = 420). Find Ye1. • Then suppose that we find that ΔI = 40. Find Ye2.
Show the price and output that maximizes profit in this graph. Then use math to calculate the price and output that will maximize the firm's profit. Calculate your profits at this price and output level.
Explain whether you think the supply of the following goods is elastic or inelastic,
In 2008 the Fed initiated a program called QE or quantitative easing to try and stimulate the economy. Using a fully labeled aggregate demand and supply graph, show what the objective of this program was. Explain what the new equilibrium point m..
(Elasticity and Total Revenue) Explain the relationship between the price elasticity of demand and total revenue. (Determinants of Price Elasticity) Would the price elasticity of demand for electricity be more elastic over a shorter or a longer per..
What is the monopolists profit under the following conditions? the profit maximizing price charged for goods produced is $16. the intersection of the marginal revenue and marginal cost curves occurs where output
Suppose you earn $1 million over your working life and the real interest rate for retirement saving is 50%. How much will you save and how much will you consume in each part of your life?
Toby can produce 5 gallons of apple cider or 2.5 ounces of feta cheese per hour. Kyle can produce 3 gallons of apple cider of 1.5 ounces of feta cheese per hour. Can Toby and Kyle benefit from specialization and trade? Explain.
If the demand for a domestic currency decreases in a nation using a fixed exchange rate system, what must the central bank do to keep the currency value steady.
Farm Fresh Corporation supplies sweet peas to canneries located throughout the Mississippi river Valley Like many grain and commodity markets, market for sweet peas is perfectly competitive.
Sp represents personal savings. This money does not go into the economy. So why is it counted in this formula?
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