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Derive a comparative static relationship for a firm that maximizes profit subject to a cost constraint for a two factor, single product function. Assume that the cost constraint is binding. Is this problem characterized by a counterpart to the Slutsky equation? Explain the practical implication of Slutsky equation in estimating input demand such as labor and capital.
One of the criticisms of oligopolies is the adverse impacts these firms have on income distribution. Do you believe that is a valid criticism? Discuss with appropriate examples.
How do we understand the state of the economy? What are the indications of the health of the economy? What is GDP? How do we measure GDP? What is the difference between Real GDP and Nominal GDP?
An investment, which is worth 22,000 dollars and has an expected return of 15.75 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow..
If the population of the United States suddenly grew because of a large wave of immigration, what would happen to wages? What would happen to the rents earned by owners of land and capital? Provide specific examples to support your answers.
If the tax elasticity of supply is 0.55 by how much will the quantity of labor supplied decrease when the marginal tax rate increases from 35 to 45 percent?
Define the equilibrium price and quantity.descibe the situation at a price of $10.00.what will occur.
To be a senator, an individual must ________.
Suppose the government decides to increase the tax rate on savings instruments. What will happen in the short-run? Use a graph to back up your answer. What happens in the long-run? Use a graph to back up your answer. Will GDP growth rates be affected..
The Fed was initially created in response to a series of bank runs in the early 1900s. How do you assess the potential of such crises in today's financial world? Do you think that the regulating tools used by the Federal Reserve are enough to prevent..
Describe the contrasting views of the Keynesians and the monetarists with regard to an appropriate contractionary (tightening) policy to bring an economy out of a period of high inflation caused by excess aggregate demand.
Suppose that the only input used in the generation of solar energy is sunlight
Tragedy of the Common. What does Hardin mean by “It is one of the peculiarities of the warfare between reform and the status quo that it is thoughtlessly governed by a double standard.”? What is the “double standard” and what implication does this ha..
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