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If the government adhered strictly to an annual balance rule for its budget, then the government's budget balance would:
A. Vary in the opposite direction to the business cycle
B. Always stabilize the economy
C. Not have a large impact on economic performance
D. Always destabilize the economy
Explain how to measure the price elasticity of demand and supply and the cross elasticity income elasticity of demand? Explain how you would calculate the price elasticity of demand for gasoline.
What is a budget deficit. Explain how are budget deficits financed? Why do Keynesians believe that budget deficits will increase aggregate demand.
What would be a short-term impact on the production of the corporation. Illustrate what would be the long term.
The total cost incurred is the sum of the fixed costs and operating costs. The latter increases as more items of a product are manufactured hence the total cost is given by: For a given product, it is found that the number of item s sold correspondin..
Discuss the types of situations where you would expect to see non-constant variance in the data. Provide examples to support your response. Describe a specific instance where heteroscedasticity would be a problem and the remedial measures that could ..
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
Quality Motors is a Japanese-owned company that produces automobiles; all of its automobiles are produced in American plants. In 2012, Quality Motors produced $20 million worth of automobiles, with $12 million in sales to Americans, $6 million in sal..
show mathematicallt whether the mardinal utility for (X1) and (X2) is increasing or decreasing. Find the Marginal rate of substitution for the indifference curve generated by the utility function.
Many observers claim that “fee-for-service” payments create incentives for physician to employ higher-cost treatments. Is this an intrinsic feature of FFS payment systems? If so, explain why. If not, what is the correct way to view the financial ince..
Illustrate what additional effects follow this initial effect. Illustrate what is total effect of tax cut on aggregate demand.
Consider the five dimensions of service quality: tangibles, reliability, responsiveness, assurance, and empathy. Identify a recent service encounter you have experienced as a customer (either B2C or B2B) that you would classify as a generally bad exp..
Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. EXPLAIN what happens in the short-run if custo..
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