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If the price of good A decreases by 5% and the quantity demanded of good B increases 10.2%, find the cross price elasticity of demand. Are the goods substitutes or complements? Why?
If the economy was working at full-employment equilibrium, illustrate the state of equilibrium after the fall in consumer confidence.
Toro Company is expanding its El Paso plastic molding plant as it continues to transfer work from Juarez, Mexico contractors. The plant bought a $1.1 million precision injection molding machine to make plastic parts for Toro lawn mowers, trimmers, an..
Suppose the market for healthcare services conformed to the model of perfect competition presented in class, as represented in the figures below. If the government levied a $10 tax on providers for each service they provided, how would the market pri..
The number of people employed in a city were 128,000. The adult population was 201, 000 and the labor force participation rate was 67%. Based on the figures listed above, what is (1) the unemployment rate, (2)labor force participation rate, (3) numbe..
Why is the use of the permits more efficient than the regulation requiring each firm to reduce pollution by one unit?
Suppose that the equilibrium nominal exchange rate is 130 Japanese yen to the U.S. dollar. If the Federal Reserve wishes to maintain an exchange rate of 140 Japanese yen to the U.S. dollar, it must meet the private excess ________ dollars in the fore..
One way of estimating the impact of another year of education on individual’s earnings would be to survey individuals about their level of education and earnings and then estimate the following equation- What is the magnitude of a typical estimate of..
Describe what observations and decisions might be made based on comparative labor costs. What countries, based on labor costs alone, might seem best to lower labor costs.
What macro policy tools would you use or favor in order to improve economic growth, reduce unemployment, and avoid price inflation right now in 2015 in the US?
The U.S. Treasury bill is yielding 2.6% and the return on the market is 11.2%. The corporate tax rate is 30%. What is the firm's weighted average cost of capital?
Which of the following procedures is correct?
q.statistical inference confidence intervals and hypothesis tests. suppose that a sample of economists are forecasting
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