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A 'structural' budget deficit is one that:
A) arises because of accounting practice but has no economic significance.
B) occurs when countries are in recession.
C) occurs regularly irrespective of the state of the economy.
D) arises because of high capital expenditure such as the building of new schools and hospitals.
Under the first plan he pays $0.25 per minute of connect time. Under the second plan, he pays a lump sum of $30 per month and only $0.10 per minute of connect time. Determine David's optimal consumption bundle and his choice between the two plans.
Agree or disagree and explain your answer. "The typical firm in a monopolistic competitive market earns above normal profits because it sells a differentiated product and only produces up to the point where marginal revenue equals marginal cost."
Which of the following is a conclusion of using the generational accounting measure?
Suppose in a survey of N = 400 students, 215 responded that they prefer small classes and 185 responded that they prefer large classes. Let p denote the fraction of all students who preferred small classes at the time of the survey, and ˆp be the fra..
You have been asked to produce a forecast for your company's new product (bottled water). List and briefly describ four factors you would consider before giving the forecast.
Two clinics want to merge. The price elasticity of demand is -0.20, and each clinic has fixed costs of $60,000. One clinic has a volume of 7,200, marginal costs of $60, and a market share of 2 percent. What are the total costs, revenues, and profits ..
Suppose ABC Company is considering bidding on a given contract. It will cost $2,000 to prepare the bid. If the bid is lost, the $2,000 cost is also lost. If ABC Company wins the bid, it will make $40,000 and recover the $2,000 bid preparation cost..
A limited has an authorized share capital of 200,000 shares of Kshs. 1 each out of which only 150,000 shares have been issued. Although the firm requested the shareholders to pay 80 cents per share, they were able to pay 50 cents per share.
For each, consider the impact on society and on business Who will benefit and who will be hurt, at least in the short run? The development of a cheap source of energy that was virtually unlimited, yet small enough to fit in a pocket The development o..
Do you think the U.S. Post Office should be protected from competition What about a pharmaceutical company that has just spent millions to develop a life-saving drug
Shopping malls typically lease retail space to a large number of clothing stores. When this group of retailers competes to sell similar but not identical products, they engage in what economists call ________________________.
The slope of the short-run aggregate supply curve can be explained by:
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