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Think of an example of the principal-agent that you experienced first-hand or read or heard about. What factors led to the problem? Were there serious adverse outcomes arising from the problem? Based on the course material, what suggestions can you offer that would have reduced or eliminated the problem?
If the quantity demanded of a good falls by 2% when income rises by 10%, then:
Can you relate the Classical and/or Keynesian macroeconomic models to assumptions about economic behaviors and to economic policies being implemented in the U.S. economy today?
Han Lee Furniture, Inc, spends 55% of its sales dollars in the supply chain and finds its current profit of $12,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. What percentage im..
If a country is absolutely more efficient than any other country in producing everything, then it would
Discuss the current issue of illegal aliens and the impact this has on the U.S. health care system. Should the taxpayers pay for health care for individuals who enter this country illegally? How do emergency rooms and hospitals protect their fiscal s..
A deposit of $800 is planned for the end of each year into an account paying 8 percent/year compounded annually. The deposits were not made for the tenth and eleventh years. All other deposits were made as planned. What amount will be in the account ..
Assume consumer tastes shift toward the consumption of apples. Which of the following statements is an accurate description of the impact of this event on the market for apples.
Define and explain ‘Law of Diminishing Returns with the help of diagram. What are the different stages of production in the short run? Define and explain ‘Price Discrimination (PD)’ with the help of diagram. Also give examples of Price Discrimination..
Contrast the ideas of nominal GDP and real GDP. Why is one more reliable than the other for comparing changes in the standard of living over a series of years? Apply the concept of a price index to comparing the rise and fall of gas prices over a sev..
What make both the farmer and the rancher willing to trade with one another.
Starting from short run equilibrium in the money market, assume Bank of Canada sells bonds using OMO. Explain very clearly using well labeled graphs, the short run effects on the money supply, the interest rate and real GDP.
A firm in an oligopolistic industry has identified two sets of demand curve. If the firm is the only one that changes price (i.e., other firms do not follow), its demand curve takes the form: Q = 82 – 8P (1) with MR = 10.25 - 0.25Q. Find the price an..
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