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Lawn mowing services are supplied by a host of individuals in the suburb of Westbrook. Demand and supply conditions in the perfectly competitive domestic for lawn mowing services are: P = $75 - 1.75QD Demand P = $2QS Supply where P is price per lawn mowed and Q is quantity of lawns mowed per day.
Algebraically determine the equilibrium industry price/output combination.
Give three reasons why firms produce in Germany rather than in a lower-wage country.
What is the share of Household A's income spent on education? Does this household consume more or less education if EF = 20 is provided by the government? What is the share of Household B's income spent on education?
The Lexus LS 430, the top of the line Lexus sedan, riad a base price in Canada of C$85,700 during the fall of 2005. Restated in US dollars using the exchange rate prevailing then, that price is $71,885.
Assume the US economy experiences deflation. Trace through the impact on the US macroeconomic variables to the effect on the FOREX rates.
Compute the price or output combination and the total economic profits which would result if competitors offer clones which make the QuickerBetter market competitive.
What kind of shocks could have caused this change to the money demand function? Determine the new interest rate and equilibrium level of output.
Illustrate graphically the impact in the short run and the long run of a Federal Reserve decision to increase open-market purchases.
Consider the following Solow model of growth. Both population and work force grow at the rate of n=1% per year in a closed economy.
Describe unemployment and the unemployment rate. Might we be able to say "Job Stats: Too Good to be True?"
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
Suppose in country Triniland employers are required to pay overtime at 50% above the normal wage rate for workers who work beyond 8 hours a day.
Agree or disagree and describe: In monopolistically competitive market, firms that innovate successfully can increase their economic profits and lock in higher market shares over long run.
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