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1. When estimating the demand for tourism what are the relevant variable that must be included for the "generating are, and the destination area?
2. Describe four major factors, other than price, likely to influence demand for a resort hotel in Acapulco.
An industry which has no barriers to entry, no product promotion strategy, a standardized product, and a very large number of firms operating within it, is said to have:
For each of the following changes in the macro-economy, show how to think about them using the IS curve, and explain how GDP is affected in the short-run. The government offers a temporary tax credit: for each dollar of investment that firms undertak..
Suppose a country has net exports of 40, transfer payments of 20, net investment income of -15, and a balance of payments surplus of 10. Find the country's current account balance and capital account balance.
What other economic factors are affected when taxes are raised or lowered, and how are they affected? Should the government increase tax rates on everyone as a way to equalize incomes and wealth?
the government imposes a limit on what producers may charge. cite at least two other ways the consumers may be "paying" for these goods
Calculate GDP loss if equilibrium level of GDP is $10,000, unemployment rate 8.8%, and the MPC is 0.75. How much money should the government spend to eliminate this GDP loss? List three reasons why the aggregate demand curve is negatively sloped (dow..
Which of the following are flows. If a flow, which of the five major kind(s) of capital does it increase or decrease.
In evaluating the accuracy of their statements, should one distinguish between (i) economist’s descriptive statements, propositions, and predictions about the world, and (ii) their statements about what policies should be adopted. Explain in detail
In the town of Inksville, Tats for Tots (i.e., TFT) is the only tattoo parlor dedicated to the under-18 age group. Being a monopolist, TFT hires you to advise it on the best price and quantity of tattoos to sell each month. Determine the values of P ..
A monopsonist’s demand for labor can be written as VMPE = 40 – 0.004ED. Labor is supplied to the firm according to w = 5 + 0.01ES. Thus, the firm’s marginal cost of hiring workers when it hires off of this supply schedule is MCE = 5 + 0.02ES. (a) How..
Manufacturing overhead allocated using ABC will: A. be more accurate and representative of resources consumed than a traditional allocation method B. always be lower than if a traditional allocation method is used C. always be higher than if a tradit..
Show that the following relation holds true sqrt((m - 1)/m) = (QE/Q*) = sqrt((m + 1)/m). What is the underlying reasons that this relation holds? Provide an interpretation of that relation.
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