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1. Distinguish macroeconomics and microeconomics.
2. What is the difference between positive and nonnative economics? How can knowledge of positive economics be useful in normative economics?
Elucidate what was the actual price elasticity before the cartel was formed.
Explain how has a more diversified labor force affected the corporate structure and the economy.
Money, Banking, and Monetary Policy: What do economists mean when they say that monetary policy can echibit cyclical asymmetry? How does the idea of a liquidity trap relate to cyclical asymmetry? Why is this possibility of a liquidity trap significan..
How does the zero sum myth set people off against each other. Explain. Why are people merely not like chess pieces Explain. How does government provided health care being free for all and granting all benefits fall into the fallacy. Explain.
Firms in Fredonia always invest $700 and net exports are zero, initially. The government budget is balanced with spending and taxes both equal to $500.
Economists who work for thegovernment are often called upon to make policyrecommendations. Why do you think it is important for thepublic to be able to differentiate normative statements frompositive statements in these recommendations?
Using the information you gathered, discuss whether you believe the country is on a good course of economic growth and whether the macroeconomic policies are helping achieve this growth.
Explain how the Environmental Protection Agencys policies impact business in the US.
Illustrate what most people do not realize is that what the Fed is actually doing is changing money supply (and not interest rates directly). When money supply changes, interest rates automatically adjust to keep the money market in equilibrium.
Formualte the problem as a linear progarm and determine the weekly production schedule.
What does it mean for two goods to be "perfect substitutes" for each other for a consumer Why is the optimal bundle usually a corner solution when a consumer is choosing a bundle of perfect substitutes
derive Karls demand curve for beer as a function of exogenous variables (ie income, prices) hint draw his indifferece curves and budget constraint and think about what must be true at his optimal bundle.
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