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The appreciation in the dollar's exchange value from 1980 to 1985 made U.S. products (less/more) expensive and foreign products (less/more) expensive, (decreased, increased) U.S. imports and (decreased, increased) U.S. exports.
What is adverse selection? How does its existence affect the market for health insurance? What are some ways insurance companies protect themselves from adverse selection?
Illustrate what is your advice to the Canadian government about which market structure to choose for pasta industry.
A road building contractor has received a major highway construction contract that will require 50,000 m^3 of crushed stone each year for 5 years. The stone can be obtained from a quarry for $7.80/m^3. As an alternative, the contractor has decided to..
Classify each of the following statements as positive or normative. Explain. Society faces a short-run trade-off between inflation and unemployment. a reduction in the rate of money growth will reduce the rate of inflation. The Federal Reserve should..
Suppose the own price elasticity of market demand for retail gasoline is -0.8, the Rothschild index is 0.5, and a typical gasoline retailer enjoys sales of $1,500,000 annually. What is the price elasticity of demand for a representative gasoline reta..
What is the Law of Supply? How do we illustrate the Law of Supply? Give an example of the Law of Supply use two to four sentences to explain your example.
The objective is to fully explain why the company has been successful and will continue to be an effective price maker or if your firm is not a price maker, what actions need to be instituted to become a price-making firm.
Why Is government intervention needed for our economy to run well. If Xavier keeps the tutor until his grade actually begins to fall, his marginal utility will be.
Nominal interest rates are quoted at a variety of maturities, corresponding to different lengths of loans. For example, in late 2004 the U.S. government could take out ten year loans at an annual interest rate of a bit over 4 percent, whereas the ann..
Elucidate, using diagrams where appropriate, explain how the averege costs of a firm may vary short period and long period.
Consider a case of small open economy. In this economy, there is an IT revolution, and as a result the productivity of the economy has gone up. What will be the eject of this productivity increase on interest rate and net export in this economy? What..
What will happen to the equilibrium price and quantity of new cars if, simultaneously, the price of automobile insurance (a complement) increases and the price of steel decreases
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