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Q. Industry-land was so named because it is highly industrialized. It is a world leader in production of manufactured goods. If industry-land put all its productive efforts into manufactured goods, it could produce 1,000 units per year. To meet needs of its own citizens at their current level of consumption, industry-land needs 200 units each of raw materials, agriculture products and manufactured goods. Total opportunity cost of 200 units of agriculture products and 200 units of raw materials is 80% of manufactured goods, or 800 units. Draw a production possibility curve?
Elucidate how managers can use price elasticity to discriminate or charge different prices among different groups of customers.
Country Z is a developing country that is facing problems of deforestation.
Assume there are two firms in a market who each simultaneously choose a quantity.
Explicate why the PPF before the war is different from the PPF after the war. Explain how you appraise the role of modern government.
Assume re is a multiplier effect and that total crowding-out effect is $6 billion. An increase in government purchases of $10 billion will shift aggregate demand to left or right by how much.
A Publishing company uses 400 printers and 200 printing presses to produce books. Elucidate how should the manager adjust input usage.
Pocoyo bakes cookies also Pato grows vegetables. In which of the subsequent cases is it impossible for both Pocoyo also Pato to benefit from trade.
Elucidate how production possibilities table or curve reflects law of increasing opportunity costs. Illustrate what do points along PPC recurrent (with respect to available resources).
Make sure that you consider two cases. In the first case, the consumer does not pay any tax before x is reduced, and in the second case, the consumer pays a positive tax before x is reduced.
Illustrate what is the best measure of economic well being of individuals in society.
The market interest rate increases to 10%. IN the afternoon at what price would your bond sell in the secondary market.
Devote too few resources to the creation of knowledge. Explain how does the U.S. government correct for this apparent market failure.
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