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Smoke detectors have been shown to effectively reduce the death rate due to fires. In order to ensure that as many individuals as possible install a smoke detector, the government recently decided to subsidize the production of smoke detectors. Which of the following will be the consequences of this subsidy? Select all that apply.
A. The demand for smoke detectors will increase.
B. The demand curve shifts to the left
C. The supply curve shifts to the left
D. The supply curve shifts to the right
E. The demand curve is unaffected
A prospective change in government purchases. Suppose that people learn in the current year that government purchase will increase in some future year. Current government purchases do not change. What happens in the current year to real GDP,Y; Consum..
Grace owns and operates a small pottery firm.Grace hires an assistant at $12,000/year, pays annual rent of $5000 for her shop, and spends $20,000/year on materials. Calculate the accounting profit and the economic profit for Grace’s pottery business...
Suppose a company produces $5M worth of output and has sales of $2M each to domestic and foreign customers. It imports $1 M worth of raw material, pays its workers $3M in wages, pays its creditors $2M in interest, and has minus $1M in profits for its..
Use two graphs to analyze the effects of the following shocks on the equilibrium quantity of savings, investment, the interest rate, and the current account in a world with two large countries. Assume that both countries begin with a balanced current..
Define the wage gender gap as the difference in mean earnings between men also women.
What is the profit-maximizing unit price PoolVac should charge for Sting Ray - Evaluate the statistical significance of the three estimated parameters using a significance level of 5 percent. Be sure to comment on the algebraic signs of the three p..
The Body Shop, Timberland, and Patagonia behave in environmentally responsible ways that differentiate them from competitors, build consumer preference, and achieve notable sales and profit gains. This is an example of ________.
Alternative X has a first cost of $5 million and an annual maintenance cost of $200,000. Alternative Y has a first cost of $7 million, a maintenance cost of $40,000 and periodic expenditures of $100,000 every five years. If both alternatives have inf..
Suppose the nominal interest rate is i = 10%, the time cost of a round trip to the bank is $25 and annual expenditure is $72,000. If a consumer makes N trips to the bank how much interest do they give up during the period? What is the total time cost..
Explain the meaning of a Nash equilibrium when rms are competing with respect to price. Why is the equilibrium stable? Why don’t the firms raise prices to the level that maximizes joint prots? What is the DWL in this model?
Suppose a person lives for two periods (working life and retirement) earning $30,000 in income in his working life, during which he consumes or saves for period a. What is saved earns interest of 10% per year. Draw this person’s intertemporal budget ..
q.johnny works for the great big cookie company gbc which buys labor at a wage of 1 an hour and uses it to produce
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