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Consider two countries that are otherwise identical (have the same saving rates and depreciation rates), but the population of Country Large is 100 million, while the population of Country Small is 10 million. Use the Solow model with no technological change to compare the steady-state levels of output per worker if:
a. the population growth rates are the same in the two countries.
b. the population growth rate is higher in Country Large.
What does the size of the minimum efficiency scale of production imply about the following:
Discuss how health can be classified as a “consumption” good as well as an “investment” good?
The loss to consumers can be decomposed into three pieces: a transfer to domestic producers, a transfer to the government, and a deadweight loss. Use your diagram to identify these three pieces.
Consider the following information about the Stark Industries, a monopolist in the market ofiron men. Suppose the demand curve is QD = 30 − P/4. Suppose further that the cost function isTC(Q) = Q2 + 3Q.(a) Determine the pro?t maximizing output, price..
Opportunity cost is a key concept in Economics. The textbook defines the opportunity cost as the best alternative that must be given up to obtain some item. Suppose you are a music fan. Lucky enough, you won a free ticket to see a local rock-band con..
Describe the process in the money market (demand and supply of/for money) by which the interest rate reaches its equilibrium value if it starts above equilibrium. (Principles of Macroeconomics)
Assume that the country initially has no restrictions on trade also then imposes an import quota
Why would high transaction costs or imperfect information tend to prevent price-taking behavior?
Gross domestic product measures... The consumer price index is used to measure inflation over time by cataloging the price of the same basket of standard consumer goods. In the year of my birth, 1987, the consumer price index was at 113.60. By 2014, ..
The firm has access to a perfect credit market with interest rate r. What is the maximum price the firm is willing to pay for a fork lift?
Suppose the income elasticity of demand for visits is +1.4. A consumer was spending $157 on visits and her income doubles. She will now spend $____.
What additional programs did the Fed create and implement to facilitate its role as leader of last resort? What was the primary purpose of these new programs?
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