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Draw a graph showing market for squash at farmers’ market that depicts positive profit. Next show what will happen to this graph when positive profit attract more farmers to the market.
Consumer and investor optimism and pessimism matter a great deal in the economy. Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate deman..
If television sets are sold in a perfectly competitive market, calculate the annual number sold. Under what consiquences will the market equilibrium be efficient.
What is rent seeking behavior? How does it explain why government has grown in recent years and how it explain why it is difficult to change tax or spending policies in the United States?
Iran subsidizes gasoline, leading to a cost to consumers that is one-fifth the market cost.
Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium quantity?
Reflect on the notion of fiscal union within the European Union. Why is it becoming necessary? Can it be achieved quickly enough to avert financial disaster within the trading bloc?
Suppose the economy produces only two goods: consumer goods and capital goods (K). Also suppose the economy is operating at full employment. Finally, suppose consumer goods are subject to legal price controls (price ceiling). Use a PPF to show the ec..
Imagine you are a member of Congress. Since consumer spending comprises at least 2/3 of real GDP, you know that increasing that spending would boost the U.S. economy in the short run. During a press conference, a member of the press asks you what you..
Compute the (point) cost elasticity of demand when cost is $700. Is demand elastic or inelastic.
Explain two examples of a public and private goods that you have consumed? Why do you think the government has to supply public goods?
In game theory, a player following a maximum strategy
The last American niobium mine closed in 1959, and all U.S. niobium is now imported from other countries. This is bad for the United States because the U.S. must give money to other countries in order to obtain niobium. bad for the United States beca..
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