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The PPF curve shows the economic choices a country can make about production given scarce resources, a given technology, and a given quantity of inputs. Assume you are a developing country, producing food and clothing at maximum capacity. What could happen when foreign investors start investing in your country?
Discuss what type of foreign investments would be best for the economy's PPF. What are the opportunity costs of these decisions?
Consider another economy in which the unemployment rate over the next three years is 6%, 7%, and then 4%. According to Okun's Law, what are the levels of short run output (Y tilde) in this economy? Suppose short-run output over the next four years ..
Illustrate what effects can the ownership of a significant part of a private firm by the government have on the firm's decision-making process and on the economic system in general
Illustrate hat are the positives and negatives of protectionist trade policies on the part of the federal government.
See the inflation adjusted data also identify the periods of negative real economic growth. What might have caused each of these periods of economic decline.
The company articles of incorporation and state laws place no restriction on the sale of stock to outsiders. An unexpected opportunity to expand arises that will require an additional investment of 14 million.
If the industry is regulated and the regulatory authority forces Widget Corp. to earn only a normal return on investment (which is included in its cost function), what is the resulting equilibrium price and quantity. What happens to consumer surpl..
Illustrate what other business decisions are impacted as well, and how. Explain.
Given an MPC of .8, if the C+I equilibrium level of aggregate expenditure is $600 billion, then government expending of $50 billion is included, Determine new equilibrium level of aggregate expenditure?
Suppose that Carl's budget is $20 and that apples cost $5 per unit and bananas cost $2 per unit. Draw our model of the optimal bundle with Apples on the horizontal axis. (You must show his indifference curves and his budget set.)
The World Bank is presently advising newly industrialized nations on how to encourage growth and they have asked for your help.
There is a pure exchange economy with two identical customer , A and B. C ustomer A has 8 units of good 1 and 4 units of good 2. C ustomer B has 4 units of good 1 and 8 units of good 2.
Explain in a couple of well written sentences which industry in the U.S. would benefit in the short run from putting a tariff on all Japanese autos,
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