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Three tools that economists use to empirically test economic theory are randomized experiments, observational studies, and quasi-experimental studies (natural experiments). First rank the three methods in terms of ability to identify casual relationships and provide a justification (explaination) for your ranking. Second, discuss the cons of each of the three appproaches.
John Maynard Keynes who is considered to be the father of Macroeconomics by many once said "In the long-run we are all dead” to emphasize why decision-makers should not worry about long-run effects of policies. Changes in the money supply don’t have ..
Research information about the U.S. Government's bailouts. Locate an article about this topic. What company was bailed out and why? What are the pros and cons of providing government assistance in a short and long run?
A rather wealthy man decides to arrange for his descendants to be well educated. He wants each child to have $60,000 for his or her education. He plans to setup a perpetual trust fund so that six children will receive this assistance in each generati..
Since Herbert Mohring regards the cost of widget capital as the fixed cost effectively, what can you conclude about the relationship between economic profits, quasirents and the cost of capital?
Suppose the market for liquor is given by the following demand and supply equations: Demand: QD = 100 – PL – 2PC, where QD is the quantity demanded of liquor, PL is the price of liquor (in dollars), and PC is the price of cigarettes (in dollars). De..
When quantity supplied increases at every possible price, we know that the supply curve has
When you first turn on or reset a PC the CPU immediately begins to execute or work application instructions
If the output from a land source brings revenue of $400, transport costs of shipping this output to market are $55 and the land used in production is 4 acres, what will the rent for this land be? If you can’t solve this problem, state why it is not p..
Analysis of Pricing: You manage MBA Deli which sells meals at a price of $6 each. The average number of meals sold per month is 7,000. MBA Deli would like to increase its sales and profits. What is the Price Elasticity of Demand? What does this mean ..
Illustrate what will happen in the international market for gold if news of war causes buyers and sellers to expect high gold prices in the future.
In the United States, what has been the traditional policy for curbing the market power of natural monopolies such as utilities?
How does a tax affect an individual’s decision? Consider the case of an individual who consumes two goods: bread and tortillas, both of which are initially free. Also, assume that the price of each good and the individual’s income are given
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