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List three reasons that firms exist. Do any of the reasons imply that the command and control of centrally planned economies is the appropriate form? What are the similarities and differences between firms and centrally planned economies?
We know that one of the key requirements for a market remain monopoly is to keep high barriers for others to enter the market. We have also learned 5 ways that how does monopolist set high barriers (Lecture slides pages 8-14). Give one example of ind..
Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20^E. Once again assume w = $6 but suppose the government imposes a tax of 25% on each dollar he pays his workers, to cover thei..
Good 1 is a normal good and good 2 is an inferior good. Using 3 budget lines and 2 indifference curves, illustrate the effect of an increase in P2 on the consumption of both x1 and x2. Label income and substitution effects for both goods
"Consider the following statement: "Employers should be able to replace permanent workers during a strike." Do you agree? Explain why."
Suppose unemployed people leave a state to obtain jobs in other states. What do you predict will happen to the unemployment rate in the state experiencing the out-migration? What might happen to the unemployment rates in the states experiencing in-mi..
A subsidy on exports is, in a sense, the opposite of a tariff on imports. If a tariff lowers efficiency, would you expect a subsidy to increase efficiency or lower it? How do tariffs and subsidies compare in the way they distort trade according to co..
Holding other things constant, an appreciation of a nation’s currency causes. Holding other things constant, an increase in a nation’s interest rate reduces.
Define the term innovation. Then, research what you think is an example of an innovative product or service. Include the following within your discussion: What is your product, and why do you feel the product you have selected is innovative within ..
We have seen that the world saw a great deal of change from 300-900 as it was transitioning from antiquity to the Middle Ages. What do you think were the TWO most significant changes/differences? Your answers can extend to religion, politics, and cul..
Explain the difference between real exchange rate and nominal exchange rate. What determines the real exchange rate and the nominal exchange rate in an economy?
What does the size of the minimum efficiency scale of production imply about the following:
Social policies are designed to a. meet individual needs, at the expense of society’s b. meet societal needs, but always at the cost of individual needs c. satisfy public opinion, no matter what d. both meet the needs of the citizenry and support the..
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