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After listening to a recent sales presentation, Mary Smith signed up for membership at the local health club. On arriving at the facility, she learned there was an additional fee for racquetball court rentals. "I don't remember that in the sales talk; I thought they said all facilities were included with the membership fee," complained Mary. Describe the problem in terms of the communication process.
According to the Coase Theorem, if transactions costs are low then a private market (that is, an unregulated market) is efficient.
Describe the effect of each of the following events on the demand or supply of gasoline in the USA. Further indicate the likely direction in the amount of gasoline exchanged AND the expected market price.
Based on Ruhmís paper on recessions and health, what are the age group where mortality has the strongest percentage response to an increase in the unemployment rate? What are Ruhmís conclusions about potential mechanisms that could explain the negati..
Consider the Cobb-Douglas production function . a. Write this in growth-rate terms. b. Next, define this in terms of per capita growth and identify the contributions of the components of per capita growth. c. If the growth rate of capital per worker ..
Explain what will the total decrease in aggregate demand be as a result of the initial $12 billion decrease.
Describe the effects of the sugar quota. In 2005, imports were limited to 5.3 billion pounds, which pushed the domestic price to 27 cents per pound. Suppose imports were expanded to 10 billion pounds. What would be the new U.S. domestic price? How mu..
The social security system has been, according to some, in danger of collapse and insolvency for some time now. Since 1950 the number of workers supporting one retiree has fallen from 16.5 to 3 while the tax assessed against wages has increased from ..
Explain the Mutiplier Effect. Try to explain it in some detail so that someone who did not know anything about economics would be able to gain a fundamental understanding of it. Use a visual aid to help the observer understand the concept.
If the price of laser eye surgery falls by 50 percent and the quantity of contact lenses demanded falls by 25 percent, find the cross elasticity of demand for these two goods.
Under what circumstances would a monopolistic firm be economically more efficient than a group of small, competitive firms? If there are such monopolies, what are the drawbacks and how could they be corrected?
A reputable study finds that a new workplace safety regulation will reduce the rate of economic growth of real GDP. Is this an argument against implementing the new reform? Why or why not?
Trace through the circular flow model in Chapter 6. What is the point of the circular flow model, what are some leakages and injections into the circular flow model, and how are the leakages and injections related to the circular flow?
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