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Assume that the product depicted below generates external costs in consumption of $4 per unit.
What is the socially optimal output?
By how much does the market overproduce this good?
After two quarters of increasing levels of production, the CEO of Canadian Fabrication & Design was upset to learn that, during this time of expansion, productivity of the newly hired sheet metal workers declined with each new worker hired.
What is the difference between contractionary and expansionary monetary policy?
Assume the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses during the past several years.
Explain how and why the firms demand curve for labor will compare to that of the firms operating in a competitive product market, and the consequences for the firms employment of labor. No graphs or calculations are needed.
Explain how would each economist explain unemployment and what policies would each advocate.
A no of empirical studies of automobile demand yielded the subsiquent estimates of income and price elasticities
Determine the Groups Share of and the Income Split Point for Individual Income Taxes as of 2003 for the following group of income earners:
The government did nothing to stem the decline. From the point of view of economic policy, elucidate what would you think was the reason.
A producer produces good y using a single input x according to the production function y=x^a where 0
Explain the method that you would use in your establishment also explain why you have made this decision.
Calculate the labor rate also efficiency variances for the month. Was paying workers the actual wage rather than the standard wage an efficient strategy for Loring.
when potential output grows 4 percent per year. Suppose also that the Fed is following the Taylor rule, with an inflation rate of 2 percent over the past year. The federal funds rate is currently 3 percent.
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