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Assume that we have a economy with no government and no capital investment that is closed to the outside world.draw a simple circular flow diagram with just firms:downstream firms that product final goods and services for consumption, and upstream in production only intermediate goods that are used by downstream firms in production. Draw and discuss a circular flow of payments diagram in witch upstream firms and downstream firms are displayed separately.
What is double counting in calculation GDP? Explain why GDP does not equal total sales.
Whats the difference GDP and GNP ?
Suppose that the rate of depreciation as well as the rate of saving are each .10. Also assume that there is no technological nor population growth.
explain how the discovery that standing forest land decreases atmospheric carbon levels affects the welfare generated by the logging industry. For the sake of argument assume that lowering carbon levels is desireable.
Let the utility function be U = log(x) - l, where l is labour and x is consumption. Find the level of labour supply if the wage rate w=10.
S hould the Australian Commonwealth government and the various Australian state and territory local government grants commissions use matching grants or non-matching grants or both grant mechanisms to fund local government programs?
What is rent seeking How much, potentially, might this monopolist spend on rent seeking activities Assume that they will earn the same profit you calculated in part c forever, and that the interest rate is 5%.
Explain how market structure affects market performance and conduct. Identify three types of government regulation that help to improve market performance and conduct
Businesses usually decide in using automation and labor in production. An automotive environment may have high fixed costs and low variable costs,
Eve bought defective ball bearings from Saginaw Corp. Alfred was the sole shareholder of the company and also its landlord. After Alfred sold all Saginaw's assets, he withheld enough money to cover the rent that Saginaw owed him. As a result Sagin..
If nominal wages and productivity increase by the same amount throughout the macroeconomy, would you expect aggregate supply to increase, decrease, or stay the same? What if productivity increases more than nominal wages
Derive a total revenue function and a marginal revenue function for the firm. Calculate the profit maximizing level of price and output for One and Only Inc.
In a complex assembly operation, it is found that the learning curve rate is 70%. The standard time of 3 minutes per assembly is reached after the 110th unit. Find i. The time required for the very first unit.
Explain how banks and individuals can use covered interest arbitrage to protect themselves when they make international financial investments.
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