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Suppose that government spending makes private Örms more productive; for example, government spending on roads and bridges lowers the transportation costs. This means that there are now two effects of government spending, the Örst being the usual effect of G we discussed in class and the second being similar to an increase in the nationís capital stock K.
(a) Show that an increase in G that is productive in this fashion could increase the welfare of the representative consumer.
(b) Show that the equilibrium effects on consumption and hours worked of and increase in G of this type are ambiguous but that output increases.
Calculate the total differential of Q. For the next three questions the answer should be a number is the other good a complementary good or a substitute good also Explain why.
Elucidate how if at all every of the following events will affect a country's production possibilities curve.
Describe why it is often asserted that exporters suffer when their home currencies appreciate in the real terms against foreign currencies and prosper when their home currencies depreciate in real terms.
Elucidate how Elucidate how an increase in the marketplace demand elasticity affects the elasticity of the residual demand curve.
Illustrate what is the dollar value of the deadweight loss when output level is produced? Illustrate what is the dollar value of the total surplus when output level is produced
Assume that during the last month of the tenth year of ownership, the property in Problem 2 is sold for 1,500,000. Assume also that the seller incurs transaction costs equalling 6 % of the sales price.
Suppose that the demand for healthcare services is perfectly inelastic while the supply curve is upward sloping. Analyze the impact.
An industry which generates detrimental externalities will have a marginal social cost higher than the marginal private cost to the industry.
It has been estimated that private prisons are about 10 percent cheaper, on a every prisoner basis, than public prisons.
Explain how would a citizen whose income is in the bottom one percent talk about scarcity and trade-offs.
Suppose that a pay equity plan has just been put in place in your organization. The pay equity consulting firm did a job evaluation and assigned points to each of the male-dominated and female-dominated jobs.
illustrate what is the minimum range within which the sample average failure rate must be found to justify with 95% confidence the advertised failure rate of 0.5%.
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