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Recent data show an increase in retail gasoline prices of 40% and reduction in consumption of 2%. Does this imply a change in demand or change in quantity demanded? Explain.
If the marginal profit is negative for the sale of a certain number of units of a product, is the company that is marketing the item losing money on the sale? Explain.
A key difference between accountants and economists is their different treatment of the cost of capital. Does this cause an accountant’s estimate of total costs to be higher or lower than an economists estimate? Explain.
Why has supply chain management become so important in recent years? What has changed in terms of business and marketing resulting in growing emphasis on the development of relationships and partnerships both upstream and downstream?
If the demand for used cars decreases after the price of a new car fallls, used cars and new cars are
We have two individuals, A and B, who works 40 hours per week each. They each consume food and clothing. It takes each person 10 hours to set up the production of food, and thereafter it takes 1 hour per production of 1 unit of food. How many units o..
Consumers are not able to resell good 1. For p
Suppose that computers use two units of capital for each worker, so that KC = 2LC, while shoes use 0.5 units of capital for each worker, so that KS = 0.5LS. There are 100 workers and 100 units of capital in the economy. Solve for the amount of labour..
Show how the IS curve and the LM curve can be shifted to get an increase in output without a change in interest rates. What kind of mix of monetary and fiscal policy is needed to do this? Will a reduction in interest rates, while holding output const..
Why/how does inflation impact the growth rate of the economy in the medium run.
Elucidate how and why the unemployment rate fluctuates with the inflation rate as is depicted in the Short-Run Phillips Curve.
Identify which of the following situations currently faced by the World Bank or the International Monetary Fund are examples of adverse selection and which are examples of moral hazard.
An individual makes $64850 per year. If they move to a city where prices are on average 20 percent lower, and they continue to make the same salary, then what is their purchasing power parity adjusted income?
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