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Suppose the chartered banks decide to greatly reduce the availability of student loans that are guaranteed against default by the Canadian government.
a. What would you expect to happen to the demand for credit cards by students?
b. What would you expect to happen to the quantity of credit cards issued to students? To the willingness of students to incur debt at the much higher rates of interest charged on credit cards?
c. Are credit cards a substitute, albeit an imperfect one, for student loans? What sign (positive or negative) would you expect for the cross-price elasticity of demand for credit cards with respect to interest rates charged to students for other forms of credit?
According to the innovation theory of profit, above-normal profits are necessary to compensate the owners of the firm for the risk they assume when making their investments.
According to the production function, with 300 labor hours, illustrate what is this economy's capacity to produce
For the period 1980-2010, how did the rate of growth of per capita GDP in China compare to that in the US? How did the rate of growth of technological improvement (broadly conceived) in the two countries compare? Give some examples of changes that ca..
Assume that economic growth is slower in the United States than in its trading partners. Given a system of floating exchange rates, will the impact of this growth differential be for the United States with respect to exports and the value of the doll..
Discuss the equilibrium using graphs for the entire market and for an individual producer. Now suppose that textile producers in other countries are willing to sell large quantities of cloth in the United States for only $25 per unit.
Compare performance of a single-price monopoly with that of perfect competition. Explain how price discrimination increases profit. Explain why monopoly can sometimes achieve a better allocation of resources than competition can.
xpect that this strong preference for Japanese products will continue for the next decade. Explain how should this influence your decision to work and save in Japan.
A health reform plan recommends introducing a tax of $20 per day on hospital stays. How this new tax will affect hospital supply curve? Draw a diagram to illustrate your answer.
Identification of the firm involved and identification of the appropriate market structure in which the firm is or will do business.
An individual, who has income I, cares only about two goods: X and Y. Their prices are Px and Py, respectively. The individual's utility function is U(X,Y)=aln(X)+(1-a)ln(Y).
Outline the methodology of studying economics also utilize examples in your conversion.
q1. when you were a child living at home your parents or guardians paid for the food utilities and clothes that you
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