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“The pervasive problem of scarcity means that every society must choose among alternative uses of its limited resources. Society has only so much labor, capital, land and entrepreneurship that can be used to satisfy the unlimited wants of its members. This decision-making process, more commonly termed allocation, is summarized by the three questions: what, how and for whom?” With a good example, explain briefly how a firm manager(s) answers these questions
If you were to take the position of a supply-sider which is a proponent of supply-side economics, illustrate what tool of Supply-side economics do you believe would help promote economic growth In the United States given today’s economic environ..
During the first 13 weeks of the t.v season the Saturday evening 8;00pm-9:00pm audience proportions were recorded as ABC 29% CBS 28% NBC 25% and independents 18%. a sample of 300 homes two weeks after Saturday night schedule revision yielded the foll..
Explain the meaning of monetary neutrality and illustrate graphically that there is monetary neutrality in the long run in the aggregate demand–aggregate supply model.
How can the use of Material Requirement Planning Contribute to productivity?
Using a demand/supply diagram, illustrate and explain the effects of the imposition of an export tax on a good Y by a home country’s government on (i) the home country’s consumers of Y, (ii) the home country’s producers of Y, and (iii) the home gover..
What are the major economic justifications for state intervention used by mercantilists? What are the major types of problems with state intervention as they pertain to international political economy?
Suppose that it is well known that many children work in low-skill jobs in poor country “X.” If rich country “Y” buys goods from poor country “X,” then the increase in demand for their products is large enough to raise the wages of all low-skill work..
Producer and consumer surpluses are measures of:
Identify whether the Fed should continue its current pace of security purchases, and indicate what “forward guidance” the Fed should issue now and why? Be specific in answering the question. Forward guidance is the specific language the Fed uses to i..
In June 2008, the U.S. retail gas price jumped from $3 to $4 a gallon. This is a 33% increase in price from January 2008. During that time, the total quantity of gasoline purchased fell by 3%. Supplies of gasoline produced also decreased from one mil..
In a recession, consumers have less income to spend. As a result, if dining out is a normal good, then which of the following would happen to the demand curve for dining out?
Two goods are substitutes if an increase in the price of one good leads to an increase in demand for the other. The market system works by getting each person, motivated by his or her own self-interest, to produce products for other people. Markets e..
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