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Suppose an earthquake destroys part of a nation’s capital stock, but does not kill off any people. Use the Solow model without technological change to describe the effect of this event on the country’s total output and its per capita output over time. Assume prior to this event the economy was on its steady state path.
Consider two manufacturers. Each makes a product. The two products arc partial substitutes. Priced at P_t. product i receives a demand q_1 = 15 - 2 9_1 + p_2 and q_2 = 15 - 2 p_2 + p_1. It costs $5 to produce a unit of product I and $10 to produce a ..
What are the key assumptions of the Lewis model that give rise to its conclusions? How would the theory’s conclusions differ if these assumptions do not hold?
1.nbspnbspnbspnbspnbspnbsp opportunity costs isa.nbspnbspnbspnbspnbspnbsp the money a business loses in a bad
Suppose Home and Foreign countries (H and F) trade two goods, G1 and G2, and each country is populated with 2 workers (workers can split work time between two industries). At home, one worker can produce either 1 units of G1 or 2 units of G2 in one d..
Find out the optimal price-quantity if the firm can price discriminate but cannot charge a two part tariff.
Over the past year, Barned and Noble shifted production of their Nook electronic book reader to Samsung, which allowed B&N to cut cost by focusing on the Production of digital content like e-books. Please use the Porter’s Five Forces to analyze the p..
Consider the role of discount rates in problems involving long time horizons. Suppose that a particular emission abatement strategy would result in a 50 billion reduction in damages 50 years into the future. Calculate the maximum amount that could be..
We say that the consumption bundles that Mei can afford but that do not use up her entire income lie:
Economics history question- Answer and explain the following about Karl Marx and Capitalism. What 2 things does Marx identify as the requirements for Capitalism? Explain the origins of each, in turn. Describe the Theory of Surplus Value in detail. Wh..
Which of the following economic changes are consistent with cost-push inflation? Check all that apply. Which of the following are consequences of hyperinflation? Check all that apply.
How does it affect level of investment and interest rates. How does it affect individual consumer. Give at least three examples in your response.
Consider a hypothetical closed economy in which households spend $0.65 of each additional dollar they earn and save the remaining $0.35. The marginal propensity to consume (MPC) for this economy is? , and the multiplier for this economy is ?.
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