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People sometimes argue that imports should be limited by government policy. Suppose a government quota on the quantity of imports causes net exports to rise. Using the circular flow diagram as a guide, explain why total expenditures and national output may
Use the arc-approximation formula to calculate the price-elasticity of demand coefficient of a firm's product demand between the (quantity, price) points of (100, $20) and (300, $10). (b) Calculate the cross-price elasticity of demand coefficient ..
c.How would the bank's balance sheet would be altered if it extended this loan d. Suppose the required reserves were 20 percent. If this were the case. would the bank be in a position to extend any additional loans
According to an executive of a baseball team, If my assumptions are correct, our team is willing to pay a maximum of $3 million for a pitcher in the free-agent market. (Related to Application 3 on page 625.)
Also suppose that in 1984 each bucket of chicken was priced at $10.00. Finally, assume in 2005 the price per chicken was $16.00 and 22,000 buckets were produced. Determine the GDP price index for 1984, using 2005 as the base year.
1. Assuming that the input price is w = 1, compute the (short-run) competitive equilibrium price and quantity for any fixed number of firms, n. 2. Compute the long-run competitive equilibrium price and quantity.
If the Federal Reserve Bank wants to increase i by 10 percentage points (e.g., from 2% to 12%), at what level should it set the supply of money?
the number of acres burned by forest fires and range fires each year is normally distributed with a mean of 5,300 acres. Last year 4,400 acres burned and it was reported that this acreage was 1.43 standard deviations below the mean.
Television channel operating profits vary from as high as 45 to 55 percent at MTV and Nickelodeon down to 12 to 18 percent at NBC and ABC. Provide a Porter Five Forces analysis of each type of network. Why is MTV so profitable relative to the majo..
If the environmental Kuznets curve held for individual households, what would the pollution-minimizing Gini coefficient be? Interpret this outcome and explain some of its drawbacks.
What happens to inflation in year 3? In year 4? How many years does it take to get inflation down to zero? Make a table like the one in the previous problem to show your results.
Suppose the average puppy weighs 10 pounds. A sample of 10 puppies yields a sample mean of 13.2 pounds and a sample standard deviation of 2.78 pounds. Assume the population standard deviation is known to be 5.25.
You are the manager of a small pharmaceutical company that received a patent on a new drug three years ago. Despite strong sales ($125 million last year) and a low marginal cost of producing the product ($0.25 per pill)
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