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Under what circumstances is an open economy likely to produce a lower level of equilibrium GDP compared to a closed economy? Would free trade still be desirable? Why or why not?
In a short run, a firm’s total costs of producing the hundredth unit of output equals $10,000. If it produces one more unit, its total cost will increase to $10,150.
Assuming there is no change in demand or the firms cost curves, explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, quantity supplied by each firm, and the total quantity supplied to the market.
Hurricane Katrina which hit the Gulf Coast region in August 2005, resulted in massive flooding which destroyed large sections of New Orleans. Suppose prior to this event, New Orleans was producing an output combination given by a point.
Assume that an earthquake destroys part of capital stock. Forecast what will happen to total production, the real return to capital, and real wage.
Does Consumer Bank face interest rate risk? That is, if market interest rates increase or decrease 1 percent, what happens to the value of the equity? How can a decrease in interest rates create interest rate risk?
An investment has a 23% expected rate of return associated with it. Describe TWO circumstances that might make this an UNdesirable investment. Be specific.
You are given the following information about the personal computer (PC) industry: Find the NRP and the ERP. Show all calculations and formulas.
microeconomic project - country is costa rica company nike 8-10 pages macroeconomic forces and policy decisions
The demand curve for your firms product is linear.Based on recent sales data you have determined that at the current price the price elasticity of demand is .80. A. Is the current price on the upper or lower portion of the demand curve
"The United States can manufacture X more efficiently than can Great Britain. Yet we import X from Great Britain." Explain
What, in your opinion, has caused the recession, and how does your explanation fit within the AD-AS model? For example, please indicate whether the cause(s) that you describe resulted in a shift of AD or AS or both
What is a government budget deficit? How does afederal budget deficit affect the economy? How does it affect thelevel of investment and interest rates? How does it affect theindividual consumer? Give at least three examples in yourresponse.
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