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If the market for alcoholic beverages is in equilibrium, then the drinking age is reduced from 21 to 18 what will happen to the equilibrium price and quantity of alcoholic beverages.
The Multiplier in a country is equal to 5, and households pay no taxes. At the current equilibrium real GDP of $14 trillion, total real consumption spending by households is $12 trillion. What is real autonomous consumption (A) in this country
What amount must be deposited into a savings account that pays 8% interest if the inflation rate is 10% and you want to set aside enough money to purchase a red tape cutting machine ten years after the deposit? The current cost of a red tape cutting ..
How might a country's regulatory environment impact a firm's international strategy? 3. How do the international strategies affect the trade-offs managers must make between local responsiveness and global efficiency?
What do you mean by a social welfare function? If you assume that such a function exists, what properties of social optima would be considered by you? Discuss such properties.
Suppose that a country's central bank has price stability as the primary objective. Describe how the central bank conducts monetary policy in times of rising energy prices
Assume that the government proposes to cut taxes while maintaining current level of government expenditures. To finance this deficit, it may either
Who are maximizing their rational choice, the Japanese or the Americans and which of the three forms would Adam Smith agree is the best choice?
Evaluate price elasticity of demand
Give a hypothetical/real world example of the MR=MC principle (Profit maximizing point). Explain what elements in example represents decreasing marginal revenue/benefit and what element represents increasing marginal cost.
The fashion (clothing), consumer electronics, fine fragrance industries are knwon to practice or have practiced resale price maintenance. In each case,indicate the probable motivation for RPM and the likely welfare consequences.
Determine what effect should each of following have upon demand for profitable music players in a competitive market?
Draw and explain the parts of a PPC. Draw a PPC for country Nambi and assume that the economy produces only computers and automobiles. Suppose now that there is a new technological breakthrough in the production of computers.
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