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The rise in the price of oil can be traced to a easy factor, but there are various other contributing factors.
The easiest explanation is that the demand for oil is greater than the present production. When demand exceeds supply, price will enhance, as people are willing to pay more to make sure that they get their scarce resource (oil in this case). Depending on your political views and knowledge of the situation, you may also believe that the production of oil is much lower than capacity due to certain middle-eastern countries know that America depends on oil imports more than other countries. An enhancing in oil prices will lead to a slightly weaker US economy.
Assume that an economy's GDP Y=5000. Also assume that the government runs a deficit where tax revenue T=1000 and government expendituresG= 1500. The consumption function is represe
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Identify and explain the evidence for and against the competitive model. Provide specific examples.
with reference to incidence of taxation, explain with the help of a diagrams, who bears the incidence of taxation when the demand for a commodity is (i)perfectly inelastic (ii) uni
Trends of Trade Shares: India's share in total world exports in 1950 was 1.85 percent and the share in total world imports was 1.7 1 percent. The share of both exports and imp
1) Suppose you are dealt two cards from a standard deck of playing cards. a) What is the probability of being dealt a pair of aces? b)There are 13 possible pairs possible (Ac
A bakery has fixed costs of $10 per day and variable costs of $1 per loaf. Its oven can handle up to 50 loaves a day and it is impossible to obtain additional capacity. Sketch the
In 2009, ABC Company made $2M of net profit and spent $100,000 on advertisement. In 2010, it made $2.5M of net profit and spent $150,000 of advertisement. Based on this information
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In reference to the above question, assume you know the combination of inputs that minimizes cost. What would happen to this input combination if the price of labor increased? What
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