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In November 1990, Chrysler Corporation announced plans to initiate three-shift or nearly continuous (21-hours-per-day) production at a number of its plants. Explain why Chrysler's decision might have been prompted by movements in its wage costs or capital costs, or both. Why would Chrysler have instituted this production change for its most popular (and profitable) vehicles, its minivans and Jeep Cherokee? What risks might such a plan pose?
Illustrate what are the levels of income every worker also consumption every worker at the initial period. Remembering that the change in the capital stock is investment less depreciation.
bananas can be produced. Between these points. Illustrate what is the opportunity cost of producing a pound of apples.
Assume you are part of a research team evaluating a proposal to clean up a hazardous waste site.
If it decrease the percentage of its output devoted to capital goods, then its rate of growth will tend to increase. Its production-possibilities curve will shift to the left or its rate of growth will tend to decline.
Describe why it is often asserted that exporters suffer when their home currencies appreciate in the real terms against foreign currencies and prosper when their home currencies depreciate in real terms.
government official proposed which gasoline price controls be imposed to protect the poor from rising gasoline prices.
Decrease will have on the desired proportions of capital and labor used in producing the given level of output at minimum total cost.
The marketplace demand for a type of carpet produced by a monopolist known as KP-7 has been estimated
She says the tax will generate $100,000 tax revenues per month. What assumption is she making.
Calculate the elasticities for each of the variables. On this basic, discuss the relative impact that each variable has on the demand. What implications do these results have for the firm's marketing and pricing policies.
Calculate the constant debt-GDP ratio that the country can achieve if the country runs a primary budget deficit of 3%. Is this debt-GDP ratio stable.
Contrast two or three key economic factors for this country with the U.S. economy, and comment.
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