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Consider the market for cherries. Consumers in Georgia like bananas as much as cherries. If the price of bananas goes up, what happens to the market for cherries? Does supply or demand shift and in what direction? What is the effect on equilibrium price and equilibrium quantity? Answer using the concepts of supply and demand and either describe the effects or show them on a graph.
What are the outstanding faults of the economic system according to Keynes? What is the social philosophy implied by the General Theory? What gave the General Theory a revolutionary quality, and how was it interpreted or misinterpreted, according to ..
Explain why the change is not likely to be a pareto improvement. Which of these changes might be approved under the compensation principle? Which might be approved under a Rawlsian social welfare function?
A manufacturer of aerospace products acquired a new multispindle, multi-turret turning center for $250,000. The machine will generate new revenue of $80,000 per year. Operating costs for the machine will average $10,000 per year. The company uses an ..
An energy audit of a residential heating system reveals that the boiler-burner efficiency is only 60 percent. In addition, the energy audit showed that an electric water heater is used. The house uses 1,500 gallons of oil annually at a cost of $1.40 ..
Maria has decided to always spend one-third of her income on clothing.
Explain what using a 5% significance level implies? Your answer should include anexplanation of what a "type 1" error is, and how it is related.
What problems might arise when using the test method of evaluating a new product?
As a result of the Kansas-Nebraska Act:
You and other college students are deciding whether to major in music or engineering. You learn that there is a shortage of engineers making it easy for engineering graduates to find employment while there is a glut of musicians for whom finding a jo..
What are the key assumptions of the Lewis model that give rise to its conclusions? How would the theory’s conclusions differ if these assumptions do not hold?
Some would argue that the effects of international trade is to take jobs away from domestic workers.
In this economy we have an MPC equal to 0.80, Autonomous Consumption of $600 billion, Planned Investment (I) of $1,000 billion, Government Spending (G) of $1,200 billion and Net Taxes (T) of $1,000 billion. If this economy had a full employment level..
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