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What are the basic institutions which should be at place for the market economy to perform well? 'Once the institutions are at place, market economy works like a self-sufficient system with a circular flow of money and material.' Draw a complete diagram of this system with arrows to indicate the circular movements.
Select a country and research whether trade and immigration has worsen wage inequality. What are some possible solutions to reduce the amount of wage inequality?
Bid-ask spreads: Suppose you contact your currency dealer at Credit Agricole and obtain the following quote on US dollars, priced in Swiss franc (SF). How much would it cost to buy SF10,000,000? Suppose you wish to sell SF 10,000,000. How many dollar..
The Cost of a Flower Business. Jen left a job paying $60,000 per year to start her own florist shop in a building she owns. The market value of the building is $80,000. She pays $40,000 per year for flowers and other supplies
We noted in this chapter that foreign central banks, especially in Asia, accumulated large dollar foreign reserves after 2000. One persistent worry was that those central banks, fearing dollar depreciation, would shift their reserve holdings from dol..
A survey of 430 business travelers found 155 used a travel agent to make arrangements (USA today, November 20,2003) Develop a descriptive statistic that can be used to estimate the percentage of all business travelers who use a travel agent to make t..
Keeping all elsr constant their answer would likely differ. How do you guess the interviewed will answer? Does the diference in response matter?
Investors in the JMJ Group purchased hotel resort in April. The group paid $25M for the building and the land. The land was appraised $5M. The group sold the resort 3 years later in August for $30M. The land was appraised then at $10M. If the income ..
q1. ibm should never sell its product for less than it expenses to produce. if costs to produce is interpreted to mean
A perfectly competitive business maximizes profit by producing at a rate where ________.
Suppose a drop in the compensating wage differential between risky jobs and safe jobs has been observed. Two explanations have been put forward: Engineering advances have made it less costly to create a safe working environment.
If Starbucks introduces the world to premium blends, and demand rises substantially, illustrate what will happen in this market as it moves to a new equilibrium.
Find the firm's marginal revenue. What is the profit-maximizing level of output and price? If TC = 2 + 2q + q^2 , does the monopolist make any profit? What is the competitive market equilibrium? Find social cost of monopoly.
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