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The difference between the amount of capital at the beginning of a year and the amount of capital at the end of the year is equal to
A) Financial consumption
B) net Investment
C gross investment
D) Capital consumption
E) Depreciation
A profit-maximizing firm in a competitive market is currrently producing 100 units of output. Elucidate firm's profits, marginal cost, and average variable cost respectively.
List the three most important expenditure programs of the federal government. How do these differ from the three most important expenditure programs of state and local governments? Explain why it makes more sense for the federal government to purchas..
What investment will you choose if your utility function were given by U(M) = M2 ? What is the certainty equivalent of the chosen investment?
Copiers cost about twice as much as workers. Would you recommend they buy another copier or hire another worker?
Describe one weakness and one strength of the gold standard. Do you agree with Milton Friedman that any system of pegged exchange rates is not a satisfactory system for countries with independent political systems;
Illustrate what is the maximum amount your firm should be willing to spend on lobbying efforts to prevent the cost from being regulated at the socially optimal level.
"Some states have had laws restricting the sale of most goods on Sunday. Consumers, by and large, oppose such laws because they find Sunday afternoon a convenient time to shop. Paradoxically, retail trade associations frequently support the laws." Wh..
Compute market price, quantity of wheat produced, and the new equilibrium number of farms in this new situation.
one year later, the new class discovered that, at a price of 30 cents per can, the number of cans has fallen to 125 and two revenues are down. (A) Compute the price elasticity of demand in the first and second cases. (B) Explain what may have happ..
Briefly state and justify your position on each of the following proposals: a) Women and minorities should be paid the same wage as white males, provided the work is comparable. b) The United States should close its boundaries to all immigration. c) ..
Explain the importance of agriculture to Brazil’s current success. What role will agriculture play in Brazil’s future? What are the implications of this for other countries? How might countries like the United States react if Brazil is successful in ..
Why are externalities referred to as "market failures?" Does the market system actually encourage this behavior? Identify two possible solutions to externalities.
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