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Explain how either the Newhouse model or the Physician Workshop model could explain why hospitals might inefficiently over-invest in expensive, new technologies.
If taxes increase by $500 and the MPC is 0.8, what is the change in consumption and private savings? What is the change in public savings? what is the change in total savings? What is the change in investment?
Problem 1. The market supply and demand functions for a product traded on a perfectly competitive market are given below:
Approximately how much output should the firm allocate to market 2? What is the approximate price that will be charged in market 1? What is the approximate price that will be charged in market 2?
You are currently charging $10 for your product. What is the price that you should charge, if demand elasticity is -3? (Essay)
Explain how the adverse inflation shock affects the AS curve. (ii) Discuss, using AD-AS diagram, what choices the Fed now must make regarding monetary policy.
A company invested $450,000 ten years ago in a new technology that is now worth $1,000,000. What rate of interest did the company earn on a simple interest
q.1. real wages and productivity-are workers paychecks keeping up? over the long run traditionally real wages grow at
What docs Pareto efficiency tell you about the equilibrium price ratio? Calculate the competitive equilibrium, and graph in the budget line and indicate the equilibrium allocation in your sketch.
How to define net exports and net capital outflow? What is it and its purpose, how is it used. Explain the relationship among saving, investment
Illustrate what is the maximum amount he or she would pay for insurance against a 50 percent chance of losing 3,600.
Calculate the consumer surplus, the producer surplus, and the total welfare for the competitive equilibrium determined in part (a) of this question.
The Pristine River has two polluting firms on its banks. Acme Industrial and Creative Chemicals each dump 100 tons of glop into the river each year. The cost of reducing glop emissions per ton equals $75 for Acme and $225 for Creative.
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