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Comment on each of the following statements:
a. "Unions tie the hands of management and inhibit efficient decision making."
b. "Unions contribute to economic efficiency in that union wage pressure hastens the weeding out of the high-cost, least efficient producers in each industry."
c. "Although unions may reduce wage inequality, to the extent that they reduce wage differentials based on individual merit and effort, the outcome may be rightly perceived as both inequitable and inefficient."
d. "Unions impair the efficiency of our economy indirectly by diminishing profits and thereby reducing investment and economic expansion."
The government decides to tax cookbooks because they feel that they encourage overeating and can lead to health issues, such as obesity and heart disease. Answer the following
Compute most favorable output also profit for each firm and the market price. Also, compute the resulting profit of cartel.
Are innovative product and service offerings ethically neutral? Consider Napster and the intellectual property issues associated with swapping music over the Internet as an example to begin the discussion.
Draw the isoquants for coffee production. Write down a mathematical expression for the production function for coffee.
Describe three problems of decentralization that occurred under the Articles of Confederation. For each problem you list, identify one solution that the Constitution provides to address the problem.
Supply and Demand in the U.S. Car Market. Please include a graph showing the initial equilibrium and the new equilibrium with the corresponding price and quantity and an explanation to support your answer. As the price of gas increases, what happens ..
Use your own life experience to explain the difference between the marginal and the average propensity to consume. In what circumstances could more saving be bad for the economy as a whole (search the Internet for the “paradox of thrift”)?
To what extent to do you agree/disagree with the actions of the central banks during this time?
Explain how do we measure income inequality. What problems arise the more unequal a country's income distribution becomes.
What are the opportunity costs of coffee for H and F?
A lump-sum tax causes the after-tax consumption schedule to be flatter than the before-tax consumption schedule
We are all familiar with fluctuating prices of gasoline at the pump. Explain why does this happen.
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