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As you may hear in the debates and town hall meetings, the candidates often differ on the state of the economy. What are two macroeconomic indicators that you would use to assess the economy's condition over the next six months? Please indicate why you selected them.
Illustrate what are the production elasticities of demand for labor, capital (trucks) and energy. What type of returns to scale is consistent with the above production function.
What is the income elasticity? Interpret the elasticity in a mathematic and economic context -- what does this number tell you? Is the own price elasticity consistent with economic principles? Explain.
Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms (at the same time, some internet businesses such as grocery home deliveries
Determine whether the following linear programming problem is infeasible, unbounded, or has multiple optimal solutions. Draw a graph and explain your conclusion. Maximize 50x + 100y
John Bros, owner of a spark plug manufacturing facility, is looking to expand his production capacity. He is considering three locations A, B, and C for the constructing of a new plant. The company wishes to find the most economical location for a..
Since the end of World War II, manufacturing firms in the United States and in Europe have been moving farther and farther outside of central cities. At the same time, firms in finance, insurance, and other parts of the service sector have been lo..
two mutually exclusive projects are under consideration.year project a project b0
Why does lending short and long present a potential problem for banks and determine two effects that a government guarantee of financial institutions can have.
Define and explain an open and closed system. Provide an example for both. Explain the inner and outer flows of an open and closed system. Define and explain leakages and injections in an open system.
Compute the substitution effect and income effect associated with a multiplicative price increase Δ in pY, that is, multiplying pY by Δ>1, for the case of Cobb-Douglas utility u(x,y)= xαy1−α.
Suppose velocity is constant, the growth rate of real GDP is 3% per year, and the growth rate of money is 5% per year. Calculate the long- run rate of inflation according to the quantity theory in each of the following cases:
The Bureau of Economic Analysis has been hit by the flu; consequently, it has been slow in getting out data on economic performance. A recession is developing, but nobody knows it yet. This delay is an example of
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