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Taxicab companies in the US typically own the cab and license. Taxicab drivers then pay a daily fee (rent) to the owner, and then keep all the fares they collect. By contrast, bus drivers are paid a salary for driving a bus. Why are cab drivers and bus drivers paid differently?
Explain the concept of supply and demand in your own words and provide two examples of how you see it at work: one from the news and one from personal experience. State the difference between demand and quantity demanded, as well as the difference be..
Suppose that the government decides to impose a tax on the producers of potato chips. How will the tax affect the potato chips prices and the quantities sold? Explain using demand and supply curves.
Assuming the same financial market transaction costs and risks, will funds tend to move toward the U.S. or Japan if the U.S. interest rate is 5%, the Japanese interest rate is 2%, and there is a forward discount on the dollar of 2%? How will this eff..
In some country, the rate of inflation is expected to increase from 2 percent to 5 percent and people fear that the increase will be permanent if the central bank does not take action. In both diagram and text, indicate clearly whether you deal with ..
If the Federal Reserve is following a restrictive monetary policy by lowering the money supply in the economy, what will be its effect on the equilibrium outcome in the economy? Explain using AS-AD analysis.
President Bush commissioned a study whose objective was to determine what the maximum tax rate on individuals and corporations should be. To what branch of economics does this study correspond? What branch of economics is concerned with the rate of i..
disregard the portion of the supply curve that corresponds to prices where there is no output.
Explain how high should a monopoly set its prices in order to maximize profits. When you post a response to this question, place it in the context of one of the following examples.
What is the main reason why a tiger is near extinction but chickens are nowhere near extinction? When a negative externality is present in a market. When we say the cost of production is $50, what is meant according to economic principles? Consumers ..
Describe schizophrenia, anxiety disorders, eating disorders, and personality disorders and how these disorders may be manifested during adolescence. Why is it important for you to understand and be able to identify these disorders in your roles as a ..
Is education provided by the government a public good? Explain your answer. Are the externalities associated with common resources generally positive or negative? Give an example of common resources. Is the free-market use of common resources general..
Read "Does a stock market crash affect the economy?" (Layton et al 2012, pp. 364–5) Immediately following the attack on the US on 11 Sept 2001, the stock markets plunged and many observers expected a recession in the US (and possibly elsewhere). Q) U..
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