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When economists attempt to predict the spending patterns of U.S. households, they will typically view the ____________ as a primary determining factor that influences the individual consumption choices that each will make.
a. income level of each household
b. nation's perennial political debate
c. national average spending level
d. national average savings level
GPI is a highly objective alternative to GDP. The main flaw with GDP is that it only includes final goods and services not primary and intermediate good production. Net Domestic Product is GDP after taxes. Over time, the U.S. economy seems to grow ab..
Illustrate what is the relative labor supply in the economy. Derive it and draw it in the same picture as in part (a). Calculate the equilibrium relative price of labor.
If the government uses a tax to get producers to internalize their externality, what is the net price received by producers.
The general public's demand for flights to Florida has an elasticity of -2 all year round. A monopolistic airline has been optimally charging everyone $360 for a round trip. Next, the airline finds out that during spring break, the price elasticity o..
What is rent seeking behavior? How does it explain why government has grown in recent years and how it explain why it is difficult to change tax or spending policies in the United States?
Which of following arguments is president using to justify trade restriction on ball bearings.
Supposes a perfectly competitive, increasing-cost industry is initially in long-run equilibrium and demand suddenly increases. Explain how demand change affects price and quantity and who benefits from increased demand.
The welfare system provides income for people who are very poor, with low incomes and few assets. If a recipient of welfare payments decides to work and earn some money, the amount he or she receives in welfare payments is reduced. a. How does the ex..
Based on the discussion in this chapter, update the controversy over the value of the Chinese yuan in foreign currency markets. Is China still using central bank foreign exchange policy to maintain the value of the yuan? What is the current policy of..
What institutions explain why workers in some countries have more capital than workers in other countries?
When a country is forced to buy and sell currency on the international foreign exchange market to maintain its currency's value, what type of exchange rate does it use?
Show the effect of an increase in the price that the government charges for electricity.
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