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MICRO: PRODUCTION THEORY: Describe the economic factors that can influence the government choice between a general subsidy ( on all factors of production) and a specific subsidy (i.e. one factor of production) that involves the same level of expenditure.
A local department store offers 24-month financing for a certain $1,000 appliance at an “interest rate of 9% per year”. What is the effective annual interest rate a customer would actually pay for this financing? What is the nominal annual interest r..
What is the actuarially fair price of insurance? What price are individuals w/$5000 in the bank willing to pay for the insurance?3. Will those w/$5000 in the bank voluntarily purchase insurance?
Which statement best compares the structure of "Harlem" and "The Weary Blues"?
Describe the Heckscher-Ohlin model (also known as the factor endowment). How does it predict countries will emphasize their comparative advantage?
Contractionary monetary policy
Assume the U.S. currently grows 2.5 million tons of fresh winter fruit and that the resources absorbed in the production of this fruit could have produced 300,000 laptop computers. Therefore, the opportunity cost of producing 1 million ton of fresh w..
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -6, while group 2’s is -3. Your marginal cost of producing the product is $70. Determine your optim..
Suppose a firm is doing the best that it can and faces the following data: TR = 40, FC =20, VC =50. Should this firm exit the market immediatly? Explain. Should this firm exit the market in the long run? Explain
“The new healthcare law will work only if congressional republicans don't obstruct its implementation. However, either congressional republicans will obstruct its implementation or they will let the U.S. Economy go into default. Whether the set of p..
Is there much research into the long term impacts of government fiscal contractions. I have heard about 2nd generation unemployed as a result of Thatcher's policies but that is very much anecdotal. What does the literature have to say on the matter?
Two countries, Canada and Japan, produce two goods, Phones (P ) and Phone Apps (A), using two factors, Skilled labor (S) and Unskilled labor (U). Phones are Skilled-labor intensive and Apps are Unskilled-labor intensive. Show how the PPF changes in e..
Based on information provided in my scenario, Illustrate what is value of marginal product. How many employees should you hire. Illustrate what wage should you set for your widget making employees.
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