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The mayor of Gotham City, worried about a potential epidemic of deadly influenza this winter, asks an economic adviser the following series of questions. Determine whether a question requires the economic adviser to make a positive assessment or a normative assessment.
a. How much vaccine will be in stock in the city by the end of November?
b. If we offer to pay 10% more per dose to the pharmaceutical companies providing the vaccines, will they provide additional doses?
c. If there is a shortage of vaccine in the city, whom should we vaccinate first—the elderly or the very young? (Assume that a person from one group has an equal likelihood of dying from influenza as a person from the other group.)
d. If the city charges $25 per shot, how many people will pay?
e. If the city charges $25 per shot, it will make a profit of $10 per shot, money that can go to pay for inoculating poor people. Should the city engage in such a scheme?
Calculate the percentage change in the money supply if the cash reserve ratio were instead reduced to 6%. Explain your results and illustrate your answers in both cases with the appropriate diagrams.
Information covering the most recent thirty days are given in the following table for the rate per gallon of regular gasoline at a local station.
Assume that both the stock market and housing prices fall in the United State 1st, describe the channels through which these shocks affect aggregate demand for goods and services.
Intra-industry trade involves nations exporting and importing the similar goods. Why would nations export and import same or similar items?
Discuss the differences among horizontal, vertical, and conglomerate mergers and what are real-world examples of each type of merger.
Examine any foreign currency of your choice (preferably one from an emerging market), and provide analysis of that currency against the U.S. dollar over the 5-year period ending with 2010.
Discuss why does the value of output always equal the income received through the resources that manufactured the output?
Discuss how deficit spending relates to the economic collapse of the Greece and Spain economies. Relate their economic collapse to U.S. current economic problems.
Two countries, Italy and America, initially are capable of producing only two goods: wine (w) and pasta (p). Italy can produce a maximum of 200w and 0p or 100p and 0w, or any linear combination of these numbers. America can produce a maximum
Construct a table indicating the social expected loss corresponding to each combination of precaution choices by the two individuals and what is the socially efficient combination?
In the 1990 and the first decade of the 2000s investors from the Asian economies of Japan and China made significant direct and portfolio investments in the US. At the time, many Americans were unhappy that this investment was occurring.
Since the US gov't was running a budget deficit at the time, assume that the war was financed by gov't borrowing. How does the equilibrium interest rate and private investment change in response to gov't expenditure on the war
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