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What do you think would happen to our idea of the basic economic problem (want vs. need vs. price vs. limited resources) if we discovered a natural resource that could reproduce itself any number of times and could be transformed by labor into any good or service? Give an example of a hypothetical product or resource.
An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the United States before the loan was fully repaid. What is the amount of the ..
Creativity, curiosity and creating value are key parts of the entrepreneurial mindset that won’t always prevent failure. Which of the following will help you avoid failure?
We have learned that the demand for money is a negative function of the nominal interest rate. Explain why it is the nominal and not the real interest rate that matters.
An improvement in the technology of air travel has occurred which affects both classes equally. Draw a suitable diagram to illustrate and discuss the effect on the equilibrium price and quantity of business class and economy class tickets. From th..
Given the market for wheat in equilibrium, assume that the government imposes a price floor on wheat. Explain what happens to the market for wheat as a result of this action? Draw and graph to fully illustrate the situation.
What are the four market types? Give an illustration of each. From a social standpoint, what is the problem with monopoly? Discuss this using an example for illustration.
A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. Fill in the blanks The team earns $....... in..
Ceteris paribus, there is an inverse relationship between price and quantity demanded. In other words, the demand curve for a good a negatively sloping. Can a demand curve still be negatively sloping of the marginal utility of the good is
How increasing tax rates do 10 % may affect company revenue, consumer expenditure and government tax revenue in the short run for imported wine?
Pick a currect topic in micro economics from any website,magzines,newspapers, related to demand and supply price, price determination. Summarize what you have understood and tell the effects on demand and suppy. please include the graph. give the ref..
Suppose the total market demand is composed by the demands of two consumers A and B. Their individual demand is: QA= 10 − 5P and QB = 4 − P. Calculate the total demand function. List detailed steps. (Hint: remember to check the kink point).
Assume re is a multiplier effect and that total crowding-out effect is $6 billion. An increase in government purchases of $10 billion will shift aggregate demand to left or right by how much.
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