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A nation in recession reduces the both the personal and business marginal tax rates. What is the likely short-term effect on government deficit (or surplus), aggregate supply, aggregate demand, and GDP price index?
As the percentage of the consumer's income accounted for by a particular good decreases, demand for the good will:
Any economically efficient production process is always technically efficient. Any technically efficient production process is always economically efficient. A production process must always be both economically efficient and technically efficient.
A cost of living index is introduced in the previous exercise. Suppose the consumer’s direct utility function is u(x1, x2) = √x1 + x2. Let base and final period prices be as in part (a), but now let base utility be u0. Show that the value of the inde..
According to Coase's theory of the firm, why do firms exist? How do firms contribute to the efficiency of the market economy in ways that 'networks of independent contractors' do not? How are the boundaries of the firm best established?
Know that the far increase on cable car rides was 67%. Price is $5 one way. Prices were raised to help ease a $57 million deficit.
John is walking down the street. He is carrying explosives in a paper bag. John sees a friend and goes to waive at the friend dropping the bag and causing an explosion. Mary who was 5 feet away is injured by the explosion. Explain whether each of the..
In January 2001, $1 was equal to 1.06 euro. By January 2012, $1 was worth 0.76 euro. As a result of the change in the value of the dollar:
The Electrotech Corporation manufactures two industrial-sized electrical devices: generators and alternators. Both of these products require wiring and testing during the assembly process. There are 260 hours of wiring time and 140 hours of testing t..
You have been asked to produce a forecast for your company's new product (bottled water). List out and briefly describe four factors you would consider before giving the forecast.
Johnny Rotten consumes two commodities, namely garbage and vinyl records. He keeps the garbage in the backyard where it is eaten by goats and vermin. The reason he accepts the garbage is that people pay him $2 per sack for taking it. Johnny can accep..
Gorton argues that regulating capital ratios cannot prevent a systemic run on banks. The FDIC has never extended protection to uninsured general creditors because this would create increased moral hazard in the banking system.
Explain how Ibn Khaldoun view traders, including types of traders, the importance of traders to the economy, the necessary skills for successful traders, and role of connections in a trader’s success.
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