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Consider economic theory:
a. Briefly explain how a map is a model.
b. Given an example of how a particular model can be appropriate in one context and inappropriate in another.
c. Identify the two attributes of a "good" economic model, and briefly explain the fundamental tradeoff between them.
An elderly lady owns a home for which she had completely paid. She arranges a reverse mortgage for $100,000 whereby she will receive monthly payments for the home form a bank. She will be allowed to live in the house until her death, whereupon her es..
Compute the revised slope of the AE cure and the multiplier when you know that the imports and the marginal tax rate
Do you agree or disagree with the statement which: A monopolist always charges the highest possible price.
Most economists want a 0% target for unemployment. The current natural rate of unemployment is thought to be somewhere around 5%. If the economy is above full employment it causes higher than normal unemployment. In a closed economy, inflation repres..
Achieving lower pollution Suppose the government decides to raise the gasoline tax as a way to reduce air pollution and traffic congestion to their optimal levels. Which of the following describes why corrective taxes, such as the gasoline tax, are u..
Suppose that the currency-to-deposit ratio is 40 percent and that the excess reserve ratio is 1 percent, whereas the required reserve ratio is 9 percent. Calculate the effect of an open market sale of $10m on the money supply (M), checkable deposits ..
Is the government as efficient as the private sector in delivering services? Why? Why not? The new health program (Obamacare) has a number of problems. Will the new health care program be affected adversely?
What were the major points of contention between the Federalists and the Antifederalists? How do those points of contention underlie the structure of government that resulted from the Constitution?
Suppose that the market demand for wholesale coffee beans is given by P = 1200 - 2Q. Suppose that there are 10 identical firms, each with MC = lOq, determine the market supply. Using the market supply solved for in (a), determine the equilibrium pric..
The following data has been provided by your manufacturing department to estimate the standard cost of producing a particular product. What is your estimate of the cost to produce each unit? If you company wishes to make a 20% of the manufacturing co..
Certain environmental laws prohibit EPA from considering the costs of meeting various standards when the levels of the standards are set. Is this a good example of “putting first things first” or simply an unjustifiable waste of resources? Why?
The manager of the aerospace division of General Aeronautics has estimated the price it can charge for providing satellite launch services to commercial firms.
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