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When oil prices increased 10 fold dring the 1973 -80 energy crisis, many oil companies made huge profits. During this energy crisis, Congress considered imposing an "excess profit" tax onoil ompanies. If you were in Congress would you vote for such a tax? Do unexpected monopolistic profits serve any useful function in a market economy? (Hint: Could additional oil revenue be used to explore and develop new fields?
Elucidate why does a starbucks coffeehouse face a downward sloping demand curve, while a wheat farmer faces a horizontal demand curve.
Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product. With a PcPt per unit tariff, the quantities sold by foreign and domestic producers respectively will be
Elucidate how the investor's curves would appear if she adopts the 50:50 strategies but would not accept any additional return.
What is Wirelesses' producer surplus from sales for each low-demand as well as consumer.
Elucidate the equilibrium price and equilibrium quantity. Suppose the price is currently $2. What problem exists in the economy? What would you expect to happen to price.
What government policies are available to reduce domestic demand in the medium run. Identify which components of domestic demand each of these policies affect.
insist that this represents a rightward shift of aggregate demand curve. Who is right. Explain.
According to the production function, with 300 labor hours, Illustrate what is this economy's capacity to produce.
The opportunity cost of Juan's time is $8 per hour. If Juan receives $2 per pound for his fish, what is the optimal number of hours he should spend fishing.
if possible, your most preferred to least preferred type of shock: positive demand shock, negative demand shock, positive supply shock, negative supply shock. Explain how would you rank them and why.
Illustrate what are the advantages of using capital in the production process. What is meant by the term "division of labor".
Assume you want to test the null hypothesis that the mean value of the bill in the box is 9 against the alternative that it is less than 9.
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