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Define elasticity of demand and explain the difference between point and arc estimates. Why are some commodities classified as elastic while others are termed inelastic? Explain why elasticity of demand for a particular commodity will be greater:
a. The greater the number of available substitutes;
b. In the long run;
c. At higher prices.
Many goods and services are illegally sold or legally sold but not reported to the government. How would increased efforts to count those goods and services affect our calculation of GDP?
illustrate the effect of capital formation by comparing the product posibility curves,at the present time and ten years in the future for two economies,one with a high and the other with a lowrate of capital formation.
question 1a i the subsequent equations relate to the market conditions for pullovers at a given point of timedemand
Why would the gov't want to limit gas price increases? Isn't that exactly what we want to happen (price increases), to allocate scarce resources? Is the gov't in the 'price control' business, and if they are, how does this work, in free-market capita..
Write a book review about the book "The Death of money" written by James Rickaeds.
What is the federal funds rate? Why is it a vital component of macroeconomics? How does the Federal Reserve influence the federal funds rate? Graphically illustrate the impact of an FOMC open market operation that aims to reduce the federal funds rat..
The _____ effect indicates that an individual’s income can buy more of all goods when the price of one good declines, everything else held constant.
q1. in the exhibit below explain how does the real wage rate at point c compare with the real wage at point a? explain
New equipment was just purchased for $750,000. Estimated salvage in 10 years is $50,000. Calculate the depreciation and book value at the end of year 4 for each of the following methods:
A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8,760 hours per year.
In theory with flexible exchange rates should allow countries to conduct ________ monetary and fiscal policies, exchange rates, but paradoxically the experience of the relatively flexible exchange rates of the 1970's suggests that such policies cause..
Illustrate what do laws of supply and demand predict would be result of an immediate removal of minimum wage in terms of price of labour and quantity available.
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