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Question1. When all people use economic reasoning, incompetence is impossible, because if the profit of decreasing that inefficiency were greater than the cost, the inefficiency would be eliminated. Thus, if people use economic reasoning, it's impossible to be on the interior of a production possibility curve. Is this statement true or false? Why?
Question2. How does the democratic political system lead politicians to emphasize points outside the production possibility curve?
Compute the gain from trade but you should discuss how comparative advantage is used.
Suppose an economy only produces single consumption well. Consider permanent upward shift of production function. Graphically describe the effects on each of following:
Assume Bank A, which faces a reserve requirement of 10%, receives a $1000 deposit from a consumer.
Name them six problems that complicate fiscal policy for policymakers. Please include examples and explanations.
What is the effect on investment? What is the multiplier effect?
Explain how does the chosen forecast effect operational and planning issues in the home building industry. Defend your opinion in your paper.
What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and P x = $5, P y = $10, X = 20, and M = 500?
Elucidate what is the effect of an increase in the quantity of money. What is the difference between real variables and nominal variables.
Elucidate the six costs associated with inflation and evaluate which if any of the costs are important for the average consumer.
Utilizing productive efficiency as the guide, which country should produce Chevrolets and which should produce Toyotas.
Make a paper in which you discuss market trends organization/industry will face. Explain your conclusions. In your paper address how each.
Estimate the relationship among inflation and unemployment.
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