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You shop for groceries in 2007 and buy $300 of food. Two years later, in 2009, you buy an identical “market basket” of groceries, only this time it cost $318. What is the CPI relative to 2007 as the base year? Show calculations.
International trade is a complex area of study. Effects of policies, currencies, tariffs, trading arrangement, and other variables not only impact a country but a region and the global economy.
A factory benefits from discharging effluent, q, into a lake. The marginal benefit function is given by 60-2q. The pollution causes damages to two nearby communities. The marginal damages to Community A are 1q. The marginal damages to community B ..
The financial analysis department at MorTex estimates that the price of a textile machine is $ 600 per day. Can management reduce the cost of assembling 5,400 units per day by purchasing a textile machine and using less labor? Why or why not?
Just prior to signing the contract, a manager reads that one of TRW's competitors has introduced a comparable airbag using a new technology that reduces the cost by 30 percent. How would this information affect Honda's optimal contract length with..
Explain how a firm in a competitive market identifies the profit-maximizing level of production. When should the firm raise production, and when should the firm lower prodcution?
The data contained in the following table shows the tradeoffs that occur in an economy that produces only two types of products: pharmaceutical and computer-related technological products. Use the data given in the table to graph the production po..
Draw the PPF. If new technology in computer production is invented and adopted, what will happen to the PPF. Find the opportunity cost of first 4 units of computer.
The “Take It Home Today” promotion guarantees buyers of new plasma TVs that they are entitled to get any sale price the company might offer for the next 30 days. Do you think such a policy will increase demand for electronic appliances.
Some economist believe that Fiscal Policy can affect swings in the business cycle. Looking back to the book, it discusses the Japanese government and their government cutting taxes.
Fully describe the theory underlying each model, and why the AS/AD model is the preferred way to measure the economy, or is it?
Compute the incremental gain Fluff Rite would earn by customizing its poppers and marketing directly to retailers.
Plot both together on a supply-demand graph. Calculate the equilibrium P and Q, and show them on your graph as well. Also calculate CS (consumer surplus) at the equilibrium.
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