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Which one of the following does not contribute to our huge trade deficit?
a) our dependence on the automobile travel
b) our addiction to consumer goods
c) our skrinking manufacturing base
d) our huge oil imports
e) none of the above
How do bubbles challenge the classical theory of asset prices? Are bubbles necessarily inconsistent with the absence of arbitrage opportunities? Explain in detail. What are the social costs of bubbles? How did Shiller test the classical theory? What ..
The residential real-estate market played an important role in the economic meltdown in 2008. What were the driving forces behind this collapse and do you think that this is something that meltdown has shown to authorities (Federal Reserve, Wall Stre..
A prescription drug is produced in the United States and sold internationally. Each unit of the drug costs $60 to produce. In the German market, you sell the drug for 150 euros per unit. The current exchange rate is 0.667 U.S. dollars per euro. Curre..
Resizing them as necessary, to illustrate your analysis. In each case, Illustrate what are the short-run and long-run effects on the aggregate price level and aggregate output.
The production function of a firm is given in the table below.
Identify two of the beneficiaries of the secondary markets (of the multi-sided network effects) for Windows OS. And identify the nature of the value(s) of the network effect?
According to the Cahner’s In-Stat Group, the number of worldwide wireless phone subscribers will soon reach the 1 billion mark. In the United States alone, the number of wireless subscribers is projected to grow by almost 17 million subscribers per y..
What type of externality would your neighbor playing his sterol loudly exemplify? Can the Coase Theorem be used as a resolution for this conflict? Why or why not?
The manager of oconomowoc rock co is under the impression that the average truckload delivered is 4500 lbs. a stockholder contends that this is an overinflated figure to lure new investors. he randomly sampled the records of 25 trucks and found the m..
Draw a supply and demand diagram to show what happens to price, quantity, consumer surplus (CS), and producer surplus (PS) in the market for computers.
Explain why is the usa called a democratic federal republic and how is our organization of government different than the canadian, israeli, japanese or french democracies.
A firm finds that at an output level of 7 units, its total cost is $1834; at 8 units of output, its cost is $2048. measuring economies of scale calculate the value of S for this firm at 8 units of output. Are there economies of scale at 8 units of ou..
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