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1. Describe the effects of tariffs not shown by partial equilibrium analysis. (Partial equilibrium analysis is shown in a traditional tariff welfare effects graph.)
2. Explain how social, political, and economic institutions interact with one another. You may explain by using an example, if you wish
A farmer just purchased a tractor for which he had to borrow $20,000. The bank, using an 8% interest rate, offered a choice of three payment plans as shown below. The farmer’s Minimum Attractive Rate of Return (MARR) is 15%. In EXCEL create a Cash Fl..
Equilibrium in oligopoly is different from other market structures because:
Assume the marginal propensity to consume for U.S. households equals .9, and the marginal propensity to import for the united states equals .1. Suppose an increase in investment of $10 million occurs at each level of income. What does the value of th..
Calculate the new supply of dollars at each exchange rate and graph the new supply curve. What is the new equilibrium exchange rate, given the original demand for dollars?
Milton Friedman believed that the Fed should control the money precisely. In the 1960s, he proposed that the required reserve ratio be raised to 100 percent. How would this policy improve the Fed control of the money supply?
Some people will argue against using either monetary or fiscal policy, instead supporting a laissez-faire approach to the economy. The well-known economist Milton Friedman, for example, believed in the permanent income hypothesis and was also a monet..
A country has a comparative advantage in the production of a good if it can
Determine the point price elasticity of demand for Tweetie Sweeties. b. Determine the advertising elasticity of demand. c. What interpretation would you give to the exponent of N?
Health insurance companies are oligopolies, and one of the criticisms of oligopolies is the adverse impacts these firms have on income distribution. Discuss in relation to the policies and practices of health insurance companies.
Suppose the government spends $500M on a project that has absolutely no value to the country. If taxes were raised $500M to fund this project, the Keynesian model predicts that this will have no net effect on output in the economy. If the government ..
q. in the early 1980s new legislation allowed banks to pay interest on checking deposits which they could not do
Suppose that you own a car wash and that its total cost fuction is: C= 20 + 2Q + .3Q^2, where C = total cost (in dollars) per hour and Q is the number of cars washed per hour. You receive 5 dollars for each car washed. What is the maximum profit that..
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