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In an effort to reduce education expenditures, Delware shuts down two of the five colleges that train nurses.
a. Using the traditional supply and demand model, discuss the effects of the budget cut on three markets: the markets for nurse schooling (tuition and number of students), nurses (wages and employment), and the health services (prices and quantity). Use graphs if appropriate.
b. Suppose that in addition to the above scenario, average household incomes increased due to a rebound in the automotive industry. Describe how equilibrium prices and quantities in the health services market would compare to the situation prior to the combined budget cuts and increases in the automotive industry.
Illustrate what do the results tell you about the relative size of the income also substitution effects for leisure for Jake.
Identify and explain the incentives for entrepreneurship. Address why someone would willingly take the numerous risks associated with running a business. Also, discuss the major attributes necessary for a successful entrepreneur
How does an economic contraction that is caused by a shift in aggregate demand remedy itself over time?
What is the value of the covariance between the initial investment W0 and the investment value at the end of the month W1? Are those variables independent? Compute E[W1], Var(W1) and sd(W1).
You need both equations and clearly labeled graphs (separate graphs for each question) to answer the following questions. Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. As well, assume t..
Assuming that the income effect is negligible, how much will he be hurt if the cost of strawberries goes from $1 a pint to $2 a pint.
According to the lectures in class, although consumption spending is about 70% of the total spending in the US economy (C=70%, I=15%, G=15%) its effect is stronger than 70% on the economy why?
Suppose sellers of liquor are required to send $1.00 to the government for every bottle of liquor they sell. Further, suppose this tax causes the price paid by buyers of liquor to rise by $0.60 per bottle. Elucidate which of the following statemen..
If a bank reserves of $100 million and checking deposits of $700 million, how much are the bank's: (a) required reserves? (b) excess reserves?
Which of following claims concerning importance of effects that explain slope of U.S. Aggregate demand curve is correct.
A manufacturer has been selling 1600 television sets a week at 370 dollars each. A market survey indicates that for each 36 dollars rebate offered to the buyer, the number of sets sold will increase by 60 per week. Find out the demand function.
The labor supply function is given by N=1000+12w and labor demand is N=2000-8w. Find the equilibrium level of employment and wage. Given existing technology and the capital stock, output is given by the function Y=100N. Does the function exhibit dimi..
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