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Grocery stores and gasoline stations in a large city would appear to be examples of competitive markets: There are numerous relatively small sellers, each seller is a price-taker, and the products are quite similar. a. How could we argue that these markets are not competitive?
Explain. A Congressman asserts the following argument: we need to produce more oil here in the United States. We consume 20 about million barrels of oil per day. If we promoted oil drilling in the United States, we could easily increase our domest..
How income may change savings behavior
Explain how an increase in interest rates initiated by the Federal Reserve affects:
At which level of initial wealth will he be indifferent among taking on the risk of getting no income and buying the insurance that removes the risk.
Provide two terms which you have heard in the mass media, political arena, or in any other venue.
Explain how would you view the merger if the streaming video services patent was declared invalid and many firms entered with streaming their own video services.
Suppose Congress (in an attempt to stimulate the economy in both the short and long run) passes an investment-tax credit, which subsidizes domestic investment. How will this policy affect (comparing the state of the economy prior to the enactment o..
Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end ..
Identify whether the subsiquent issues are macroeconomic or microeconomic and explain why you categorized them in that way.
Suppose that the economy is initially at a long-run equilibrium. Then the Fed increases the money supply. Assuming any resulting inflation is unexpected, explain any changes in GDP, unemployment, and inflation that are caused by the monetary expan..
If the government decides to intervene to return the economy to full employment, elucidate what will happen to the economy in the short run and in the long run.
Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable..
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