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Discuss why you would not expect all industries to have a similar relationship to the economy. Give an example of two industries that have different relationships to the economy. Please discuss your findings and how the economy will affect them differently.
How does a government budget deficit affect the economy? Identify two periods in recent history in which the United States has run budget deficits. What were the reasons for the deficits during those time periods?
After the financial crisis that hits the country of Cinfuria in 2007, 8 million people become unemployed. If 25 million individuals are lucky to keep their jobs, what is the unemployment rate? Please specify your answer to two decimal places.
Calculate the percentage rates of increase in real GDP, consumption of durables, consumption of nondurables, and consumption of services, and plot these. What do you notice in these plots compared to the information in Figure 3.9 and 3.10.
Efficiency wages are:
Suppose that Missing Link must pay a tax equal to 40% of its gross revenue. What is the optimal number of machines for the company.
Draw appropriate marginal income curve. Show range over which a marginal cost curve could rise or fall without affecting cost industry charges.
How much does the airport need to set aside now to pay for these costs, if the company can earn 10% per year, compounded every 4 months?
President Bill Clinton assigned his wife the task of developing a national health insurance plan to increase the availability of medical care for the poor. Explain how would one determine the opportunity cost of the proposal.
The Wilson Company's marketing manager has determined that the price elasticity of demand for its products equals.
Suppose a monopolist producing self-cleaning jackets can sell 20 jackets at $100, and 21 jackets at $98. The monopolist is unable to price discriminate, so in order to sell a total of 21 jackets, the price per jacket must be $98.
The impact of labor migration on patterns of international trade depends on the characteristics of the labor migrants. In which cases might migration expand trade? World income? In which cases might it reduce trade and world income?
Why is a point below the production possibilities curve less efficient than a point on that curve?
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