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Question 1: Word count : around 500 words
Economists are deeply puzzled by our desire to have children. First, kids are really expensive - the biggest financial decision most couples will make. Forget the cost of buying the family home; the kids you choose to populate it with will end up costing just as much, or more, over a lifetime. A survey released last week by AMP and the National Centre for Social and Economic Modelling found the typical Australian family spent $812,000 raising two kids. This is an increase of nearly 50 per cent in just six years. ...Economists like to assume we are rational individuals who make decisions based on anticipated costs and benefits.
-The Sunday Mail (Qld) May 26 2013
You are the senior Economic advisor to the Prime Minister who is currently considering how to reduce the cost of having children and promote more economic growth. Some of her party want to continue John Howard's "baby bonus" scheme that provides a lump sum of cash to parents upon the birth of a child. Others argue that the government should instead aim to focus on lowering the costs of educating children by making tertiary education free.
For any given demand curve for right to pollute, the government can achieve the same outcome either through setting a price with a corrective tax or through setting quantity with pollution permits.
Now assume the government increases spending, reducing the country's savings rate based upon this change. What is the effect on the government spending on the economy.
assume youve just been assigned to a project to determine the future demand for natural gas in a rapidly growing
Summarize the gains from trade in the Theory of Comparative Advantage
Imagine a person's utility function over two goods, X and Y, where Y represents dollars. Specifically, assume a Cobb-Douglas utility function:
A firm can seek any combination of quality and price it chooses. Thus, it can go with a low quality-low price strategy or use one which combines high quality with a high price. Ideally, of course a high quality and a LOW price will be the most pow..
The Microsoft trial has been one of the most investigations of antitrust behavior since the turn of the century.
Determine what did classical economists suppose about flexibility of values, wages, and interest rates and what disagreements did Keynes have with classical economists?
If there is an increase in the government budget deficit _______. the demand for loanable funds will increase, interest rates will increase, and the amount of borrowing will increase, the demand for loanable funds will decrease, interest rates will d..
The kinked-demand schedule that an oligopolist believes confronts the firm is given in the table below. Compute the oligopolist's total revenue at each of the nine prices
Amazon has created three elements with how they are approaching the consumer market: fulfillment centers, Amazon Prime, and Amazon Fresh.
A commercial bank has excess reserves of $10,000 and a required reserve ratio of 20%. It grants a loan of $8,000 to a customer, who then writes out a check for $8,000 that is deposited in another bank. The first bank will find its reserves decreas..
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