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1. Discuss the following statement: "Higher labor productivity allows firms to produce more goods with the same number of workers and thus to sell the goods at the same or even lower prices. That's why increases in labor productivity can permanently reduce the rate of unemployment without causing inflation".
2. How might policy changes in (a) through (d) affect the wage gap between low-skill and high-skill workers in the United States?
a. increased spending on computers in public schools.
b. restrictions on the number of foreign temporary agricul- tural workers allowed to enter the United States.
c. an increase in the number of public colleges.
d. tax credits in Central America for U.S. firms.
Assume that a firm acts as a price taker. Regardless of the demand, it sells each unit of its product for $5. Assume that the rms marginal cost is given by MC = 0.2q + 3. What is the level of output q that maximizes profit?
Suppose the graph on the next page depicts the demand for football tic k ets at Grand University.
As increases in income cause a chain reaction of spending by many business and individuals.
Determine the impact of global financial crisis of 2008-2009 on the economies of industrialised nations and emerging markets. Discuss what effect do problems like these have on attitudes towards free trade?
(a) Calculate the number of firms on market
Consider a football franchise with 10 home games and two types of tickets (high quality and low quality) facing consumers of two types as described below:
A small open economy produces two goods: Manufacturing (m) and Agriculture (a). Production of manufacturing uses capital (K) and labor (L) while production of agriculture uses land (T) and labor (L), i.e. capital is a factor of production specific..
1. airway express has an evening flight from los angles to new york with an average of 80 passengers and a return
Identify three firms you might want to work for. Using the VRIO framework, evaluate the extent to which the resources and capabilities of these firms give them the potential to realize competitive disadvantages, parity, temporary advantages, or susta..
Cloud-based computing allows businesses to store and access large amounts of data over the Internet
Economic decisions including what goods and services to produce (supply), how resources are allocated and regulated and how profits are distributed are made and implemented by the government.
briefly explain the theory of rational expectations. what makes supply-side economics theoretically attractive? what
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