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Economists have been grappling with a debate regarding the extent to which stabilizing asset prices should be a goal of monetary policy. The three goals of the Federal Reserve Board are to have economic growth, full employment, and price stability. In your opinion, should monetary policy be used to stabilize asset prices given the volatility of the market in the past couple of years?
What is the opportunity cost of going to a doctor to be examined for skin cancer? Would eliminating research reduce or increase the cost of U.S. health care?
Illustrate what did classical economists assume about the flexibility. What disagreements did Keynes have with classical economists.
Illustrate the average cost, marginal cost, and marginal revenue for a firm making a positive economic profit in a short run, perfectly competitive environment. Indicate the profit. Now illustrate what will happen to this profit in the long run.
When the United States placed a tariff on steel imports in 2002, foreign producers naturally complained, but there were also complaints from U.S. firms operating in other industries. Why would other types of firms strongly object to the tarriffs on U..
Assume that James owns a wheat farm that produces an annual crop of 500 bushels. His only choice is to store it in a nearby grain elevator owned by Martin, whose facility will be empty unless James is using it.
A binding minimum wage is expected to increase unemployment among minimum wage workers. Two years ago, the Congressional Budget Office recently issued its estimate of the effects of an increase of the minimum wage to just over $10/hour.
Stabilization policy holds that during periods of poor economic performance government should engage in expansionary policies but during periods of poor economic performance government should engage in contractionary policies. Provide three reasons f..
There are some concerns that employers might opt out of providing health coverage and simply give employees vouchers and direct them to buy coverage through their states' exchanges. Do you think this is a realistic possibility? Please fully suppor..
What must and entrepreneur do to earn a profit? (2) How do the actions of firms earning profits influence the value of resources? (3) What happens to the value of reseources when losses are present?
Explain why does a production possibilities curve bow out rather than forming a straight line sloping downward from left to right.
Describe the degree of substitutability between holidays in Australia and holidays overseas and draw an indifference curve that illustrates your description.
Do you agree that the government should have the right to now tap into telephone and cell phone calls with greater ease, video monitor pedestrians in public places, place fingerprints on identification and show it to authorities when asked, and ha..
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