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Ethanol is a motor fuel manufactured from corn, barley or wheat. Suppose the federal government decides to heavily subsidize ethanol production. Explain the effect of the subsidy on:
A. Corn.
B. Gasoline.
C. Automobiles.
D. Soybeans.
Oil prices have fallen recently due to falling global demand and rising global supply. What are some potential ways to combat rising fuel prices in the future (demand side and supply side)?
If I produce 20,001 copies my total cost will rise to $750.02, therefore my marginal cost of producing copies must be increasing.” Draw a graph to illustrate your answer.
For each of the following shocks, describe how monetary policymakers would respond (if at all) to stabilize economic activity. Assume the economy starts at a long-run equilibrium.
What would you expect the Forward Rate to be between Japanese Yen and British Pounds, one year from now?
Explain what causes the shift in the Short-Run tradeoff between inflation and unemployment? Analyze the effects of Tax Cuts, Increasing Government Purchases, and Quantitative Easing using the IS-LM model. Do you believe that all these policies are ef..
A firm has $5 million in sales, a Lerner Index of 0.75, and a marginal cost of $45, and competes against 3,000 other firms in the relevant market. What price does this firm charge its customers? By what factor does this firm mark up its price over ma..
Reflect on your performance as a leader and a follower. What do you know about these different roles now that you didn't before? How might you improve your own actions to be a better team mate?
Please consider the case of monopolistic competition.
Why does the US government feel that the use of illicit drugs such as Cocaine and Opium (Morphine) should be controlled? What are the seven objectives of the ONDCP?
How do sports marketers enhance the perceived value of their commodities? Cite at least two examples. How has the Internet changed entertainment marketing? Is this a positive or negative change?
How does quantitative easing relate to functions of the federal reserve? What is its purpose in adding more liquidy to the banking industry? Is the federal reserve still using quanititative wasing as of 2016.
Your company operates in a perfectly competitive market. You have been told that advertising can help you increase your sales in the short run. Would you create an aggressive advertising campaign for your product?
Explain gambling from a risk-return perspective and from a Christian worldview. What is wrong (from a Biblical viewpoint) with gambling if consumers want it? Is price-discrimination always wrong? Under what conditions might it be ethically allowable?
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