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Supply Side Economy
Given the importance of the M-Pesa to the rising economic growth of the Kenyan economy, what should Safaricom do about the Kenyan government’s announcement of a new 10% tax on financial transactions? For this question assume that transactions are bet..
Assume that the central bank takes the drastic strategy in part 1, but that the private sector has rational expectations.
Consider a company that produces dog toys. The only resources that the company uses to produce these toys are Capital (i.e. machines and raw materials) and Labor (i.e. workers). The company sells 10,000 toys a month at $100 per toy. Write down the to..
How does game theory explain why strategic moves fluctuate? Some oligopolies use a form of implicit cooperation called price leadership, which is legal in the US. Why do you think these firms try to engage in this practice? And why does price leaders..
From the e-Activity, synthesize the primary ways in which consumer and provider incentives work together to achieve cost reduction under the Affordable Care Act (ACA). Provide at least one (1) example of such synthesis to support our response.
The purchase of a used pick up for $14,000 is being considered. Records for other vehicles show that costs for oil, tires, and repairs about equal the cost for fuel. Fuel costs are $2500 per year if the truck is driven 10,000 miles. Use a weighted es..
This question uses the general monetary model, where L is no longer assumed constant.
Economists claim that there are several causes of economic inefficiency in medical care. List three basic causes and, for each, describe why it results in economic inefficiency and poor performance in medical markets.
Brenda owns a construction company that employs bricklayers and other skilled tradesmen. Her firm’s MRP for bricklayers is $22.25 per hour for each of the first seven bricklayers, $18.50 for an eighth bricklayer, and $17.75 for a ninth bricklayer. Gi..
When the price level rises more than expected, a firm with a sticky price will sell its output at a price that is
For the period 1980-2010, how did the rate of growth of per capita GDP in China compare to that in the US? How did the rate of growth of technological improvement (broadly conceived) in the two countries compare? Over the next half century, do you e..
Average visits per week equal 640 when the copayment is $40 and 360 when the copayment is $60. Calculate the percentage change in visits, percentage change in price, and price elasticity of demand using 640 and $40 as the denominators for percentage ..
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