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Let's use cloth and food, with inputs of labor andland, with cloth the labor intensive industry. If the relativeprice of food increases in the 2 good HO economy, what happens tothe relative utilization of the labor in the production of food?What about in the production of cloth? If applicable, illustratethis relationship with graphs, and if there is an effect, explain the mechanism by which these relative uses are changed. What implications does this have for the welfare of different groups insociety?
Elucidate what does either player have a dominant strategy. Explain is there Nash equilibrium in this game.
How do banks create money, and what could the Federal Reserve do to reduce this credit creation process, and in what circumstances might it want to do this?
What is the firm's profit-maximizing (or loss minimizing) output (Q) level? What is the amount of its economic profits (or losses) at this output level? What would be the firm's decision at this price/output level?
Illustrate what was impact on supply and demand of labour on one sector of labour market. Elucidate factors that affected labour demand and labour supply in chosen historical example.
Elucidate why does the government create monopoly power via its patent system, when elsewhere it spends millions trying to prevent the emergence of or regulate monopoly power.
Illustrate what is the minimum efficient scale for each technology. Illustrate what if it was more optimistic about summer sales.
Explain effect of an open market purchase on interest rates. Make sure you discuss liquidity effect, real income effect, price level effect and inflationary expectations effect.
What is the significancee of this opportunity cost to the search for better technology to reduce pollution?
An increase in autonomous investment will cause equilibrium output to increase
We know tastes and preferences play an important role in demand. Do you think of any possible future "popular product".
Find out the equilibrium price and quantity that will prevail in the market. At a price of $10, would there be a surplus or shortage.
Illustrate what is definition of price elasticity of demand. Explain relationship between price elasticity and total revenue.
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