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With reference to output and substitution effects, explain why and how an increase in the wage rate of autoworkers willgenerate a negative employment response in the long run than in theshort run. Assume no changes in prices on non labour input and assumelabour productivity remains constant.
Discuss the tragedy of the commons in a free-market economy. Address the following in your response: Explain the concept of the tragedy of the commons Can it be avoided in a true free-market economy? Why or why not? Identify three government actions ..
if possible, your most preferred to least preferred type of shock: positive demand shock, negative demand shock, positive supply shock, negative supply shock. Explain how would you rank them and why.
When gasoline prices spike, producers consider using oil fields that once had been passed over because of the high costs of extracting oil. In a figure, show what this statement implies about the shape of the oil extraction cost function.
Define and explain the relationship between total utility, marginal utility, and the law of diminishing marginal utility. Describe how rational consumers maximize utility using the utility maximization rule.
Analyze the role of credit rationing in both a developed country and a less-developed country. How does the role of credit rationing influence economic growth and employment in these two countries?
Suppose the government imposes an excise tax of $10 on a market. Suppose further that the price elasticity of demand for the good is 0.9 and the price elasticity of supply is 0.3. Everything else held constant, the sellers will bear _____ percent of ..
Assume that a new project will annually generate revenues of $2,100,000 and cash expenses (including both fixed and variable costs) of $500,000, while increasing depreciation by $250,000 per year. In addition, the firm's tax rate is 37%. Calculate th..
How much do you have to pay for a bond rate that pays 6% dividend compounded semi annually, with a face value of $5,000 that is going to be paid (maturity) in 5 years. The buyer wants to have an interest rate profit of 8% compounded semi annually.
which cumulative expenditures are increased. Raising taxes also government expenditure by the same amount such which cumulative provide is decreased also cumulative demand is increased.
Let the consumption function depend positively on disposable income and negatively on the interest rate. Provide the economic intuition behind this assumption. Draw a IS/LM graph with the normal IS curve as well as the IS curve with this modified con..
Describe the Heckscher-Ohlin model (also known as the factor endowment). How does it predict countries will emphasize their comparative advantage?
Construct a choice table for interest rates from 0% to 100%. If the MARR is 10%, which alternative should be selected? Can you please explain how to solve the problem on excel
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