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Assume the world consists of two countries, China and the US. If China decides to stimulate growth through a policy of running a large export trade surplus, why does the US have to run a trade deficit and a net capital account deficit? What is in the impact on US national income and employment?
Sam has three investment opportunities. The first one will require an initial cost of $100,000 and will return $150,000 one year from now. The second investment requires an outlay of $200,000 and will return $300,000 after one year. Which investment ..
Consider a competitive market involving firms with identical U-shaped average cost curves that is in the long run equilibrium. Suppose that the government imposes a lump sum tax on every firm in this industry. A firm can avoid the tax only if it stop..
This question relates to the Ethics in Patient Referrals Act, which is commonly referred to as the “Stark Law.” Under that law, which of the following statements, if any, is true?
In response to the recession of 2008, the US Federal Reserve Bank made several efforts to increase banks excess reserves, decrease interest rates for lending, and increase lending. These "extraordinary measures" have been somewhat controversial (at l..
Should antitrust laws (or other regulatory policies) attempt to eliminate all forms of imperfect competition? Why or why not?
The Investment demand curve is a useful tool to summarize an important and complex relationship in the economy.
Suppose that the price of jet fuel used by airlines has increased dramatically. As the CEO of Blue Sky Airlines (BSA), you have been presented with the following options to deal with this problem: Raise airfares to offset cost increases.
Suppose that you have just purchased the security, and suddenly the market interest rate falls to 5%. What is the security worth?
What is "segmentation by purpose of travel"? How can it help in the analysis of tourism? What is "psychographic" segmentation? How does it help in the analysis of tourism?
Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. EXPLAIN what happens in the short-run if coust..
Compute the effect of a $24 billion federal income tax cut when the population's marginal propensity to consume is 96%.
If your rival advertises and you do not, you will make $1 million and your rival will make $3 million. Does rival have a dominant strategy. What is Nash equilibrium for one-shot game.
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