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With the disappearance of the former Soviet Union and the end of the Cold War, the United States became the world's only superpower and no longer engaged in an intense competition to build up its military. As a result, in the 1990s Congress and the White House had the opportunity to reduce the military's share of the budget and spend more funds for nondefense goods. This situation was referred to as the "peace dividend." Now consider that the need to combat terrorism diverts resources back to military and security output. Does a peace dividend or a reversal to more military spending represent a possible shift of the production possibilities curve (new curve) or a movement along it(going from one point to the other on the same curve)? Analyze why and support your analysis with a graph
Using Hot Dogs, Graph the market and the individual supply, demand and costs for Hot dogs side by side. Make sure to include the S.R. and L.R profits.
Imagine that you are British Chancellor of the Exchequer and World War I has just ended. Explain how you would figure out the dollar/pound exchange rate implied by PPP. When might it be a bad idea to use the PPP theory in this way?
Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a packet of cigarettes currently costs $8 and the government wants to reduce smoking by 20%, by how much should it increase the price
Divide the data into two groups: points where R1 4 in one group, points where R1 ≥ 4 in the other. Compute the least-squares line and the residual plot for each group. Does the line describe either group well? Which one?
Compute the price elasticity of demand for pies at the firm's mean price: ($7.50) and mean weekly sales quantity (20,000 pies). Next, compute the cross-price elasticity of demand. Comment on these estimates.
A country produces manufactured goods, whose industry is characterized by increasing returns to scale, monopolistic competition, and firms that differentiate their products. Firms are symmetric all firms have identical costs functions and demand f..
where N is the set of all individuals in the population, and hi is the human capital of individual i. Assume that H is fixed. Suppose there are no human capital externalities and factor markets are competitive.
Assume the Mushroom Kingdom: there are 21659 gold coins in circulation, nominal GDP is 86722 gold coins, the Central Bank of Mushroom Kingdom increases the number of gold coins in circulation by 2.4% each year, and GDP increases by 4.8% annually.
How many vacuums must she sell in order to cover her total costs?
Consider an IS-LM model in which money demand depends on after-tax income, so the LM equation is M / P = L(r,Y ?T) . The IS equation is standard one, Y = C(Y T) + I(r) +G. Assuming a fixed price level in the short run, find the signs of dY* / dG a..
In the United Kingdom the lifeboat service is funded by charitable donations. How can this work? How are the rescue services funded in other countries?
A building is priced at $125,000. If a down pament of $25,000 is made and a payment of $1,200 every month thereafter is required, how many months will it take to pay for the building. Interest is charged at a rate of 9% compounded monthly.
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