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Sample Question: Microeconomics
The technology is now developing so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your car and automatically charges you for the use of the road. a. How could this technological change contribute to ending bottlenecks and rush hour congestion? b. What are some of the problems that might develop with such a system?
Bassett furniture made to close all manufacturing plants in North Carolina, USA and outsource their furniture production to manufacturing plants in China.
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent. Draw the new short-run Phillips Curve.
Prior to opening his hardware shop Bob worked as an investment banker earning $175,000 each year. He pays his employees $150,000 per year.
Illustrate what is the tolal accounting cost. Illustrate what is the total economic cost. Elucidate why these are different in this way.
Production procedures elucidate the law of increasing opportunity costs.
Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."
Elucidate what would you expect to happen to the nominal yields changes in inflation expectations and required real yields occurred.
Bridget has limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese.
Suppose the externality/public good aspects of weather forecasts and argue for or against such a "privatization" of weather forecasting.
Consider a firm that has just built a plant, which cost $20,000. Each worker costs $5.00 per hour. Based on this information, fill in the table below:
If it will cost us approximately $0.75/bottle to supply more Coke to our consumer what should we do if our goal is to maximize profit.
A firm has estimated the following demand function for its product: Calculate the advertising elasticity of demand and explain its meaning.
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