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In which ways did local communities by developing the vast amount of geographically dispersed hydro-resources in Norway, contribute to electrifying the nation?
The country in this example is a large exporting country. Initially, the country exports motorbikes at the world price of $96. Motorbike producers lobby heavily and receive an export subsidy. What is the domestic price per bike after subsidy? What is..
Describe how the substitution effect and the income effect influence the slope of an individual's supply curve of labor.
Explain how this monetary policy action will affect real growth and inflation in the short run and the long run.
Elucidate how a profit from selling the drug. This is, in part, due to the fact to the company spent $1.2 billion developing the drug also obtaining FDA approval.
Kevin has well-behaved preferences and currently has a bundle with positive amounts of two goods. Let x1 and x2 denote the quantities of goods 1 and 2, respectively. Thinking in terms of x1 on the horizontal axis, the absolute value of Kevin’s margin..
Joe is an empire builder". That is, his goal is to produce and sell as much as possible. Show that Joe's output is a decreasing function of all input prices.
Joe's starting salary as a mechanical engineer is around $80,000. Joe is planning to place a total of 10% of his salary each year in the mutual fund. Joe expects 5% salary increase each year for the next 30 years of employment. If the mutual fund wil..
Mrs. Siegal has two alternative activities to help relieve her backache. In the first, she can visit a physiotherapist. The total time for a physiotherapist visit, including travel and waiting, is two hours. Mrs. Siegal earns a wage of $20 an hour. ..
A lump-sum tax causes the after-tax consumption schedule to be flatter than the before-tax consumption schedule
Think of one situation in which the Government is actively involved with the purpose of changing an outcome in the appropriate market. Do you agree that the Government should be involved? Why or why not?
“When the firms in the industry are just able to cover their cost of production, economic profit is zero. Therefore, if demand falls, causing prices to go down even a little bit, all of the firms in the industry will be driven out of business.” True ..
Consider an income guarantee program with an income guarantee of $5,000 and a benefit reduction rate of 40%. A person can work up to 2,000 hours per year at $10 per hour. Draw the person’s budget constraint with the income guarantee. Suppose that the..
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