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Let’s assume the demand for balloons is expressed by P=40-2Q. The supply is P=3Q.
1) What is the equilibrium price and quantity?
2) What is producer surplus?
3) What is the consumer surplus? (Make sure you show all your work)
Elucidate how do the GDP per capitals change after accounting for price indices.
Explain the main channels through which the Fed can influence economic activity. Which theory has provided a better model, Classical or Keynesian, when it comes to prediciting how money affects the macro economy? Explain
explain the difference among moving along a curve and shifting the curve. Assume a market is in equilibrium and the demand curve shift to the right, describe the market adjustment process in restoring equilibrium.
An investor is considering the construction of a new marina on the Detroit river at a cost of $68m. M&O costs will average $80,000 per year for the first five years, and rise to $100,000 per year thereafter. A major overhaul costing $12m will be requ..
Consider a firm for which production depends on two normal inputs, labor and capital, that are not perfect complements. Initially the firm faces market prices of w = 10 and r = 8, for labor and capital. These prices then shift to
Each year a sample of applications is taken to see whether the examination scores are at the same level as in previous years. Illustrate what is your conclusion based on this value.
q1. at daves current consumption bundle involving positive units in both hot dogs and sodas his marginal utility for
Suppose there is a permanent increase in a country's saving rate. This increase in the saving rate will cause:
An investment bank is planning to interview 10 job candidates, randomly chosen from the applicant pool. Individuals differ in their abilities to put together deals and perform other functions that are part of an investment banker’s job.
Suppose minorities form 29 percent of a local population. A local business has 125 employees of which 28 are momorities. Did the business discriminate in its hiring practices? Write the null and alternative hypotheses. What is the value of the test s..
Describe how McDonald's and Wal-Mart elucidate changes in the macroenvironment affect individual firms and industries through the microeconomic factors of demand.
The Federal Reserve chairman acknowledged the economy was in a recession. What actions might the federal government take to give the economy a boost?
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