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1. Do we have enough money in circulation in the public? Explain.
2. Do you think that it is necessary to control money supply. Why or why not? Explain.
3. Is it good or bad to have too much money in circulation in the public? Explain.
q1. suppose that bargaining as envisioned by the coase theorem can take place and that the homeowners initially hold
A fixed resource is one that?
Labor costs have been increasing at an annual rate of 10%. A firm wishes to set aside funds to cover labor costs for the next 5 years. Determine how much must be set aside today if the money will be invested and will earn interest at a rate of 10%. T..
Copiers cost about twice as much as workers. Would you recommend they buy another copier or hire another worker?
How and why can the decision of U.S. citizens to save money cause economic problems for the economy? So, if the economy is in a recession, who is at fault: business, households, or government?
We manufacturer automobiles given the production function q = 5KL where q is the number of autos assembled per eight-hour shift, K is the number of robots used on the assembly line (capital) and L is the number of workers hired per hour (labor). If w..
An investor has an opportunity to buy a parcel of land for $100,000. He plans to sell it in two years. What will the sale price have to be for the investor to get a 25% constant dollar before-tax ROR with inflation averaging 10% annually? What escala..
Why does the percentage gain in earnings observed when worker gets one more year of schooling measure the marginal rate of return education?
What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitutes one product for another? Use examples to illustrate.
A decrease in productivity in a country will cause its currency to ________ because it produces goods at a ________ price, everything else held constant.
Assume an open, mixed economy (C + I + G + X = real GDP) and an MPS of .2. Explain if it would be expansionary, contractionary, or useless to the economy to increase government expenditures by $50 billion and also increase taxes by $50 billion.
Your firm spent $100 million developing a new drug. It has now been approved for sale, and each pill costs $1 to manufacture. Your market research suggests that the price elasticity of demand in the general public is -1.1. What price do you charge th..
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