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Suppose the velocity of money is constant at 10 transactions per year, the price level for this year is $4, and real GDP this year is $6,000,000.
What is the money supply this year?
What is the difference between second-degree price discrimination and third-degree price discrimination?
If I spent all my money ($450,000) on a new house I could buy a house with 4500 square feet. I settle for a 1500 square foot house. (Each square foot costs the same.) The day after I close the deal a nearby nuclear power plant is condemned and the va..
Elucidate how consumers in an economy can be better ff if the marginal rate of transformation does not equal consumer's marginal rate of consumption.
How has the recent increase in the price of a barrel of oil affected the prices of bicycles, cars and airplane fares?
Suppose you can hire your mechanic for up to six hours. The total benefit and total cost functions are B (H)=420H-40H^2 and C(H)=100H+120H^2. The corresponding formulas for marginal benefit and marginal cost are MB (H)=420-80H and MC(H)=100+240H.
What are the three main issues that face correction professionals on a regular basis and what are the best responses to these issues?
Suppose that capital's and labor's shares at .3 and .7. What would the effect be of increasing the pool of labor by 10 percent? If the increasing labor is due to population growth, will the resulting increasing have an effect on people’s welfare?
The city government is losing millions of dollars on the mass transit system (buses and subways). The government proposes to increase the fare of a ticket by 20% to raise revenue and has asked your advice. You know that the price elasticity of demand..
You are the manager of a monopoly, and your demand and cost functions are given by P=300-3Q and C(Q)=1500+2Q^2, respectively. MR(Q)=300-6Q and MC(Q)=4Q. What level of output should this monopolist produce in the short run? What price should this mono..
if Bob bids $ 5, Alice bids $ 6 and Bob n passes, Alice gets $ 20 and pays $ 6 to auctioneer and Bob pays auctioneer $ 5. Both have $ 100 to bid. What is optimal strategy.
Illustrate what is the meaning of economies of scope and explain how do they differ from economies of scale.
Assuming that factor markets are otherwise free and competitive, explain why the higher real wage would fail to increase the share of labor income in national income.
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