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Chapter 2 # 4
Lawns produce no crops but occupy more land (25 million acres) in the United State than any single crop, such as corn. This means that the US is operating inefficiently and hence is at a point inside the production possibility curve. Right?If not, what does it mean?
Chapter 2 # 5
Groucho Marx is reported to have said, "The secret of success is honesty and fair dealing. If you can fake those, you've got it made." What would likely happen to society's production possibility curve if everyone could fake honesty? Why? (Hint: Remember that society's production possibility curve reflects more than just technical relationships.)
Chapter 30 # 3
The government has just increased taxes.a) Demonstrate the effect on the price level and output in the standard model.b) How would your answer to a differ if there were partial crowding out?c) How would your answer to a differ if there were complete crowding out?
Chapter 31 # 4
Suppose a country's nominal GDP is $600 billion, government expenditures less debt services are $145 billion, and revenue is $160 billion. The nominal debt is $360 billion. Inflation is 3 percent and interest rates are 6 percent.a) Calculate debt service payments.b) Calculate the nominal deficit.c) Calculate the real deficit.
The government will tax good for many reasons, resulting in a fall in equilibrium quality while the prices increase. Could someone explain how price controls and taxes have influenced your purchasing choices.
Testifying at a price fixing trial involving Cargill Corp. and the market for chicken growth hormone, (in which the Cargill is one of only three firms worldwide), an executive for Perdue said
Explain how is the current account related to a country's business cycle. What is the relationship between a country's net financial inflow and its current account.
Discuss the differences among commodity money and fiat money, making sure to explain what makes fiat money work.
You are provided with the subsiquent transactions that took place during a current fiscal year.
GDP per capita in a nation like Switzerland can have a low GDP per capita also still have a high standard of living.
Explain briefly the advantages and disadvantages for each tool the Fed can use to manipulate the federal funds rate.
In each of the cases listed below determine what this consumer needs to do (in terms of purchasing X and Y) to maximizes their utility.
Describe (with appropriate figure) short run and the long run impact of immigration on native labour market when the immigrants and natives are complements.
The largo Publishing House uses 400 printers and 200 printing presses to produce books. A printer's wage is $20 and the price of a printing press is $5000.00. If not, how should the manager of Largo Publishing house adjust input usage?
As a government needs to increase tax income, it will often increase the sales tax on gasoline.
Illustrate what price is required to maximize income but keep profits at a minimum of $300?
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