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Demand: P=50-QD and Supply: P= 25+QS The government decides to impose a price floor of $40. Illustrate graphically the different economics effects of such intervention in this market. Calculate and compute the deadweight loss generated by the government intervention and the producer surplus
Indicate whether each of the following is counted in this year’s GDP: a. you bought a new Wii at GameStop last year and resold it on eBay this year. b. You purchase an “Investing for Dummies” book at Barnes and Noble. c. You purchase a historic home ..
Would you rather receive $100 today or $120 in one year? b Would you rather receive $205 today or $240 in one year? c Would you rather receive $500 in one year or $610 in two years?
In Japan, potential GDP is 600 trillion yen (¥) and the table below shows Japan’s aggregate demand and short-run aggregate supply schedule. Draw a graph of the aggregate demand curve and the short-run aggregate supply curve. What is the short-run equ..
If an autonomous decrease yields a new PAE expression, PAE = 195 + 0.6Y, find equilibrium and graph it on a Keynesian cross diagram and find the multipler. Please explain.
Cost Minimization for Cobb-Douglas. Suppose the Acme Gumball Company has the production function of q=LK. Given that the MPL=K, MPK=L and MRT S=MPL/MPK. Part a-b, we are analyzing the impact of output on input choices. Suppose wage rate is w= $5 and ..
does barney have an absolute advantage in any activity. Illustrate what is Barneys relative opportinuty cost of writing one additional speeding citation.
Note that reverse culture shock refers to the process readapting to one's home culture following an overseas assignment. Why do you think this might be a challenge?
A firm’s short-run cost function for the production of gizmos is given by the following expression: C(y) = 10y2 + 200y + 100 000 a. Calculate the range of output over which it would be profitable for this firm to produce gizmos if it can sell each gi..
What is an absolute and comparative advantage? Give an example from your own life where you have an absolute, but not a comparative advantage with someone else.
Given the following variables in the open economy aggregate expenditure model: autonomous consumption, CO = 200; autonomous investment IO = 200; government spending, GO = 100; export spending, XO = 100; autonomous import spending, MO = 100; taxes, TP..
The following equation represents the daily market demand for crude oil. If collusion is not allowed, what kind of market arrangement do you think is likely to result from competitive interactions among these four firms? Now suppose collusion is allo..
Who is most likely to be earning economic rent?
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