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1. Why is a point below the production possibilities curve less efficient than a point on that curve?
2. Distinguish a change in demand and a change in quantity demanded. What are the causes of change in demand and quantity demand?
3. Describe the market process that should occur if the price of a product is below its equilibrium price, and then describe what would occur if the price is above its equilibrium price, assuming that there is no market interference.
4. Identify who is and is not included in the labor force, explain how the unemployment rate is calculated, and list and explain the major types or categories of unemployment.
5. What is GDP? Explain the two main methods used to measure GDP. Why is GDP important?
1. according to the textbook natural scientists often conduct research via controlled experiments whereas
Elucidate how banks and individuals can use "covered interest arbitrage" to protect themselves when they make international financial investments.
Suppose there are two airlines, each one runs one flight a day to Chicago. Delta runs one at 8AM and United runs one at 6PM. There are 100 people whose preferences are evenly distributed between 8AM and 6PM. Each consumer values the flight at $300..
The initial price of cup of coffee is $1.00 and at that price, 400 cups are demanded. If the price falls to .90, the quanity demanded will increase to 500.
2. What will happen to equilibrium income in the following cases a. The mpe is 0.8, and autonomous consumption declines by $200. b. The mpe and mpc are both 0.5, and taxes rise by $400. How much of an increase in government spending would be required
Trade between the United States and another country in any one of the following areas: customer support services, garments, medical services, or technical products. Discuss these points: a. How is this trade arrangement beneficial
What money supply must the Bank of Canada set next year if it wants to keep the price level stable? What money supply must the Bank of Canada set next year if it wants inflation of the ten percent?
could you discuss that the drop in sales might be something less or something more than this. Use economic reasoning to justify your forecast.
Given that the CPI was 17.1 in 1929 and 184 in 2003, how much would you have to make in 2003 to have the same real hourly wage?
Calculate the IRR for this investment. How would you explain result of your analysis? (Show your analysis in graphs of present worth versus interest rate)
If the gov spends $10 million giving subsidies to certain types of companies, is that money added to the category of G. What about if the gov gives a grant to a company. What about transfer payments made by the gov to the poor.
Assume the 3 firms compete for market share over an infinite time horizon. Each firm takes the present value of 1 dollar tomorrow to be X dollars today, where 0
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