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A. Suppose the a business buy a total 110 billion of the four resources (land, capital, labor and entrepreneurial ability) from households. If households receive $64 billion in wages, $12 billion in rent, and $22 billion in interest, how much are households paid for providing entrepreneurial ability?.___________$ billions
B. If households spend 60 billion on goods and $50 billion on services, how much in revenue do businesses receive in the product market?____________$ billion
How does each of the following transactions affect (1) the current account balance and (2) the capital account balance for Australia? Show that in each case the identity that the trade balance plus net capital inflows equals zero applies.
What are the factors that affect the supply and demand of that good or service. How do you expect the demand and supply of that good or service to change in the next year.
how should he change his bundle to reach his optimum? Explain your answer using the marginal utility condition at the optimal choice.
The president of the US announces in a press conference that he will fight the higher inflation rate with a new anti-inflation program. Predict what will happen to interest rates if the public believes him. If the public believes the president's prog..
You are a novelist who has been published several times. None of your books have been a great commercial success, but you have established a fine reputation as a writer, and you make a decent living. Your agent works for a well-known agency which rep..
The demand for football tickets is Q = 360 – 10P and the supply of football tickets is Q= 20P. The government levies a per-ticket tax of $4, which is paid by consumers. Calculate the after-tax price paid by consumers. Calculate the gross price receiv..
Fetzer valves can be made in either China or the United States, but because labor in the United States is more skilled, on average, than labor in China, the production technologies differ. Consider the two production isoquants in the figure. Each rep..
Calculate price, quantity and social surplus for the initial state and each policy.
Describe one (1) reason why the flexibility of wages and prices tend to favor the Keynesian economic view in the short run and one (1) reason why the flexibility of wages and prices tend to favor the classical economic view in the long run.
A machine tool , which has been used in a plant for 10 years, is being considered for replacement. It cost $10,000 and was depreciated by MACRS depreciation using a 5-year recovery period. An equipment dealer indicates that the machine has no resale ..
For each of the following situations, decide whether the bundle Lakshani is considering optimal or not. If it is not optimal, how could Lakshani improve her overall level of utility? That is, determine which good she should spend more on and which go..
The special cost structure that is necessary for a firm to adopt a peak-load pricing policy is:
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