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Suppose the government decides to increase the tax rate on savings instruments. What will happen in the short-run? Use a graph to back up your answer. What happens in the long-run? Use a graph to back up your answer. Will GDP growth rates be affected?
Johnson Metal Company uses 60,000 gallons of chemicals each year. The cost of ordering the chemicals is $200 per order, and the cost of carrying the pigment in inventory is $1 per gallon per year. The Company uses chemicals at a constant rate every d..
Suppose the market for good X has a four-firm concentration ratio of 0.50. Furthermore, assume that total sales in the industry are $1.2 million. Based on this information, we know that sales for the largest four firms in the industry equal (in aggre..
If the required reserve ratio is 10% and $1,000 of new bank reserves are created by the Federal Reserve, what is the maximum potential increase in the quantity of money in the economic system (not just the money created by the banking system but the ..
Assume that a national restaurant firm called BBQ builds 15 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $300,000 of equipment and furnishings. To help partially defray the cost of this expansi..
Consider a supply and demand model of the wholesale gasoline market. If a tropical storm forces some refineries to temporarily withdraw from the market, what curve shifts and in which direction?
After reading the article about eliminating the middleman and War by Parker, discuss how this allows higher profit. How is this helping people get affordable glasses? Is anyone else doing this? Do you think this is a good business model? Why or Why n..
Would the following events usually lead to capital deepening? Why or why not? A weak economy in which businesses become reluctant to make long-term investments in physical capital.
In an effort to reduce education expenditures, Delware shuts down two of the five colleges that train nurses. Using the traditional supply and demand model, discuss the effects of the budget cut on three markets: the markets for nurse schooling (tuit..
Illustrate what is the quantity of economic investment that has resulted from BBQ's actions
Dogswell's marketing plans were ambitious, but were not working. What is their primary problem? Would money from the new investors solve the problem? What other options do they have? What do you recommend Giannini do to save the company?
Consider a beach that is one mile long and populated by 2,000 people (uniformly distributed). A particular location on this beach is identified by the number x , where 0 \leq x \leq 1 . There are two concession facilities that sell ice cream, Store 1..
In a well-known legal case, Miller v. Schoene, a classic conflict of property rights was featured. Red cedar trees, used only for ornamental purposes, carried a disease that could destroy apple orchards within a radius of two miles. Suppose society c..
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