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Define benefit and cost externalities. Explain why situation involving benefit externalities tend to result in an under allocation of society’s scarce resources and why involving cost externalities tend to result in an over allocation of society’s scarce resources.
What is a budget deficit. Explain how are budget deficits financed? Why do Keynesians believe that budget deficits will increase aggregate demand.
What would be additional effects follow from this initial effect. What is the total effect of the tax cut on aggregate demand.
Use this equation to explain the level of income at which there is a zero lower bound on the federal funds rate
What plant size will the firm choose in producing. Draw the firm's long-run average-cost curve on the diagram and define this curve.
Illustrate what wage would a monopoly union demand Explain how many workers would be employed under union contract.
How can the issue, perspective, concept or model enhance and enrich understanding of International Economics.
Illustrate what price should the firm charge to realize the targeted profit. Illustrate what would be its (cost-based) markup ratio.
Country described by the one-country model in section Suppose that the country temporarily raises its levels of γA. Draw graphs showing how the time paths
Capital stock at the end of the year of this economy to remain constant as the beginning of the year, how much investment is needed.
Assume in this market all apartments are identical, so there is only one equilibrium rent. Show the rent as $800 per month.
Explain the solution to the firm's cost-minimization difficulty ever occur off the iso-quant representing the required level of output.
Elucidate the marginal revenue from the fourth worker
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