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1) Suppose both product and factor markets are competitive, why is the labour demand curve downward sloping?
2) Professors, lawyers and doctors receive similar amounts of education, why are professors paid less than lawyers and doctors?
3) Why do we say that a monopoly is inefficient?
4) Why are some of the products, such as gasoline, taxed more heavily than other goods such as food? Explain your answer in terms of externalities.
5) How can patent encourage invention?
Explain the following practice/policy in terms of externalities.
(i) Charitable donation over HK$100 is tax deductible in Hong Kong.
(ii) Government increases the penalty for the drivers who run the “red light”.
Suppose that expectation of reducing housing values cause households to decrease their demand for new houses and the financing that accompanies it.
During the Great Depression, the Federal Reserve Board
What are price indexes designed to measure. Outline how they are construed. When GDP and other and other income figures are compared across time periods.
Briefly explain why the three variables are appropriate explanatory variables to predict the consumption of services or why they are related to consumption.
What is the best way to use static supply and demand theory to analyze a dynamic world which is constantly changing?
An investor is considering buying a 20-year corporate bond. The bond has a face value of $1,000 and pays 6% interest per year in two semi annual payments. To receive 8% interest, compounded semi annually, how much should be paid for the bond?
Which of the following is often not a disadvantage of decentralization?
Consider a small country that exports steel. Assume that a "pro-trade" government deicdes to subsidize the export of steel by paying
hould the measure of imports used in the GNP accounts therefore be defined to include only imports of FINAL goods and services from abroad. What about export.
An asset purchased for $50000 has a depreciable life of 5 years, and it has a terminal book (salvage) value of $5,000 at the end of its depreciable life. With the straight-line method of depreciation, what is the assets book value at the end of year ..
He plans to marry at about the end of year 6 and will skip the investment contribution that year. How far below or above his $300,000 goal will he be?
Toys are produced by a competitive industry. Santa Claus gives away one million free toys each year. It costs Santa nothing to produce these toys. Illustrate Santa’s effect on consumer’s surplus and the producer surplus earned by commercial toy manuf..
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