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Mechanics usually have better information about how to fix automobiles than their costumers do. What problems does this advantage create? Do mechanics or their customers do anything to limit these problems?
The purpose of this problem is to study the sacrifice ratio. Assume that initially actual and natural real GDP both equal 11,000 and that the rate of inflation is 3.5 percent.
Suppose you are the manager of a California winery. How would you expect the following events to affect the market equilibrium price (up or down) you receive for a bottle of wine? Please state the shift (leftward or rightward) of demand or supply.
A paper mill has leaked a toxic substance (chlorine) into the ground. Fixing the leak was very expensive so the paper mill chose not to fix the leak. Once local residents and local government discovered that the toxic was contaminating local water su..
A and B are painters and have the exact same cost structures except that A paints in a house he owns but that he could rent out for $4,000/year, while B paints in a house that he rents from Ithaca Realty for $4,000/year. Assume that the painting busi..
Suppose Congress had chosen to both increase government spending and raise taxes by the same amount in 2009. What increase in government spending and taxes would have been required to prevent the decline in output in 2009?
Studies indicate that the price elasticity of demand for cigarettes is about 0.4. if a pack of cigarettes currently costs $2 and the government wants to reduce smoking by 20%, by how much should it increase the price?
During a war the government puts pressure on producers for heavy equipment, supplies, and services, making each more important.
Crowding out occurs when
Have you thought about starting your own business? What opportunities seem attractive? What type of financial resources and personal skills would you need to launch a new business? How would you obtain these financial skills and personal resources?
Does the free-market (i.e. unregulated) use of common resources tend to be more or less than the socially optimal level?
q.the equation of capital accumulation is k k i - deltak where k is the capital stock at the beginning of the year i
Draw a graph that shows a market with inelastic demand and elastic supply at equilibrium. Then, on your graph, draw what happens when the government subsidizes buyers. Note the price received by sellers and price paid by buyers. Who receives most of ..
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