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Q1. Expectations and consumer confidence are important in determining fluctuations in aggregate spending. In your opinion, what is the present status of consumer confidence? Do you think consumers are pessimistic or optimistic? Briefly discuss.
Q2. How would an increase in each of the following affect the consumption function? How would it affect the saving function?
a. Autonomous net taxes
b. The interest rate
c. Consumer optimism or confidence
d. The price level
What is the Deadweight loss cause by the insurance policy? What happens to the size of teh deadweight loss if it turn out that the marginal external benefit of visiting the doctor is $50?
Explain the essential distinctions among the stages-of-growth theory of development, the Structural change models of Lewis and Chenery.
The NFL wants to give the "common fan" the opportunity to attend the Super Bowl, Illustrate what is the equilibrium price also quantity.
The marginal damages(costs) associated with that function are MD=2Q+2. Sketch a graph what the marginal benefits and marginal damage curves.
Illustrate what type of organization has a high fixed cost and low variable cost balance to run its operations. Discuss the balance of fixed and variable costs for the organization.
Its terminal salvage value will be $23,000, with annual operating costs of $7,500 for labor and $2,500 for maintenance. The company's minimum attractive rate of return is 18%.
Discuss at least two alternative measures of national welfare that have been put forward? What are the primary strengths and weaknesses of these alternatives and discuss at least two alternative measures of national welfare that have been put f..
Suppose the RBA were to implement a simple rule for monetary policy, such as one that makes the monetary aggregate M3 rise at a steady rate of 3% per year. When would this rule work and when would problems occur with such a rule?
Compute how this policy affects consumer surplus, and the cost of pollution. Would you recommend this policy.
He plans to marry at about the end of year 6 and will skip the investment contibutions that year. How far below or above his $300,000 goal will he be?
"The Assistant Secretary for Time Travel recommends that the bureau choose the socially optimal price, the price necessary for efficient allocation of resources. Which price is required for efficient allocation of resources.
Firms can shift their marginal cost curves to the right, resulting in higher outputs at the same or lower maximum-profit prices. This can be done by
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