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Explain which of the following transactions would be directly counted in 2007's GDP. In each case, explain whether the action causes an increase in Consumption, Investment, Govt. Purchases or Net Export. If the transaction is not included in 2007's GDP, explain why not.
(a) You purchase $5000 worth of Google's stock.
(b) A record company produces 500, 000 CDs of a new artist. Only 100,000 are sold at the price of $15.00.
(c) You purchase a 1999 Lexus for 25,000 and then purchase a set of special tires for $1600
You fix your friend's car saving him $300.00 and in return, he paints your house saving you $400.00.
Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Assume that the exchange rate between the Canadian dollar and the Euro is 2 Euros per Canadian dollar.
Essay on Market imperfection associated with negative externalities.
Suppose a risk-averse consumer has an initial wealth of $5,000 and a utility function U(M) √M.. He faces an 80 percent chance of losing $4000, and a 20 percent chance of losing $0.
Identify trends or other patterns in inflation within the an economy of your choice over the last five years using quarterly data from the Central Bank or other Government based Statistical agency websites as a source.
Find out an article which is related to health economics from health journal. Some possible sources include Health Affairs
Macroeconomics questions, discuss the short-run and long-run effects, Keynesian model, Distinguish between ongoing demand pull and ongoing cost push inflation.
Let's say there's a world-wide influenza pandemic. Assume that the marginal cost (supply) of influenza vaccinations is constant at $40. Assume that everyone in society has health insurance that pays 80% of all medical services
What is the profit-maximizing price-output combination and what are the levels of the profits and consumer surplus at that point? What is Dead-weight-loss?
What is the difference between the medium of exchange and the store of value? What is the difference between commodity money and fiat money?
What are primarily intended to address the problem of insuring people who do not have health insurance? Would a public national health insurance system reduce total spending on health care in our economy?
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