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Consider the following estimates from the 1990s of shares of income of each group. Draw a rough Lorenz curve for each country. Which has the most nearly equal distribution, based on your diagram.
Country Poorest 40% Next 30% Next 20% Richest 10%Bolivia 13 21 26 40Chile 13 20 26 41Uruguay 22 26 26 26
Explain how advertising can be employed to allow Tots-R-Us to keep price average above cost without encouraging entry.
Ellucidate how does technology affect the dissemination of information throughout the market.
Elucidate effect would you expect an increase in the property tax rate to have on residential rents. Would you expect the effect to be different in the long run from what it is in the short run.
Can you please provide an example of the market where government has imposed a price ceiling or a price floor and use demand and supply analysis to elucidate the consequence on that market.
Where does cross-price elasticity information is more important.
If it is good for comunity for people to own their own homes, home ownership should be subsidised with special tax advantages or subsidies.
One of the major political developments of the past several decades is the growing size and economic/monetary integration of the European Union. Elucidate what effect do you think this will have on international trade between countries.
Elucidate the difference among the statement "the money supply is fixed" and the statement "the money supply is exogenous".
Explain how does the marginal price for a product like this differ from a product like automobiles. What relevance might there be to this difference.
Explain the impacts of an expansionary fiscal policy such as a tax cut on the levels GDP, Consumption, Investment, interest rate and unemployment and price.
Illustrate what rate of inflation characterized this economy during 1994.
Elucidate why the Fed must normally add reserves to the banking system via open market operations on most days in order to maintain its interest rate target in the Fed Funds market.
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