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1. Consider the following statement: “Because deficit reduction is costly to the economy, governments should never run budget deficits.”Do you agree with this statement? Briefly explain.
2. According to Bloomberg.com, “At an Oct. 7 foreign-exchange conference in New York . . . Alan Greenspan called the budget gap ‘scary’ and said the federal government needs to cut spending on entitlements . . . ”Why does former Fed Chairman Alan Greenspan find the budget gap scary?
where L1 is the number of workers employed in Sector 1 and L2 is the number of workers employed in Sector 2. The total number of workers in the economy is 1,000. The only difference between the sectors is that in Sector 1 workers are paid their ma..
Determine what are economic decisions made in tradition, command and market economies and what are the pros and cons of each?
One person-day of labor produces: China 9 rice 3 computers India 4 rice 2 computers a) Does any country have an absolute advantage If so, which one b) For India, what is the resource (or opportunity) cost of rice (R) in terms of computers (C), and C ..
Illustrate the factors comprises in making decisions about pricing tobacco products indicating which would be the most influential.
The company for Economic Cooperation and Development (OECD) provides some of the best data and statistics available for comparative international work.
A firm has Total Costs (TC) of $12,000 over the next three months (TOTAL for the 3 months - not per month), of which $8,000 are fixed costs (TFC) for rent on its lease that cannot be broken. If it stays in business over those months, then the firm..
What are the highest and lowest payments from the writer that the beekeeper- farmer team will accept for the sixth day?
Explain why do think the European Union countries decide to have a single central bank and a single currency, instead of just agreeing to maintain fixed exchange rates among their currencies.
What is the expected value of the company in one year, with and without expansion? Would the company's stockholders be better off with or without expansion? Explain. What is the expected value of the company's debt in one year, with or without expa..
Assume that there are many countries capable of producing two goods, and that each country has only one factor of production, labor.
The university has been struggling in recent years, so they have hired you to help them in their last attempt to find an appropriate solution so that the university can survive
Other things being equal, a rise in a country's terms of trade increases its welfare. What would happen if we relax the ceteris paribus assumption, and allow for the law of demand to operate internationally
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