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A cigar seller notices that the demand for cigars is highly inelastic. In an attempt to increase revenue, he lowers cigar prices. Explain briefly whether he has made the right or wrong decision and why? For full credit you have to use a diagram to make your point.
The Economic Policy Institute periodically issues reports on wages of entry-level workers. The institute reported that entry-level wages for male college graduates were $21.68 per hour and for female college graduates were $18.80 per hour in 2011.
The Solow growth model tells us that a flood of immigrants will, in the long run, raise interest rates and reduce wages. In world in which absolute convergence applies, absolute convergence implies that the dispersion of income per person will conver..
Which of the following are tools available to the Federal Reserve to influence the money supply directly?
Elucidate the multiplier concept as it applies in this case. Explain what are the qualifications and limitations of the multiplier model.
Suppose the demand for paper is given by Qd=360-4p and the industry marginal cost of production is given by Qs=6p.in addition the firms production imposes an external toy with an associated marginal damage of MD =2. what is the net cost to society of..
Identify at least four key points of a relevant economic article from either the Strayer Library or a newspaper - Analyze the dynamics of supply and demand to anticipate market equilibrium.
Suppose the production function for pasta is Q = 4kl. Does this cost function have increasing or decreasing returns to scale?
Consider the Solow model without technological progress (A= 1). The production function is given by y=k1/2, the savings rate is 30%, the population growth rate is 2% and the depreciation rate is 10%. What are the long run levels of capital, income an..
Free international trade enables all nations to gain from specialization and trade. To what degree can the United States save jobs, compensate for low foreign wages, compensation for costly environmental policies and protect developing nations from b..
How do the concepts of adverse selection and moral hazards affect financial and labor markets? Which of these effects is the most significant? Why? What are the most significant effects of these concepts on organizations and individuals? Why?
The highway department expects the cost of maintenance for a piece of heavy construction equipment tp be $5000 in year , then increase to $5500 in year 2, and increase $500 annually till year 10. At interest rate 10% per year determine the present wo..
Interview a small business owner and ask him or her about both the positive and the negative role of government in their business. Write a 2 page summary of your interview and include the questions you asked.
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