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Explain how incomplete information can cause market failure. Give at least one example of this type of market failure and explain how government intervention has been used to correct the problem. How effective has this form of intervention been? Use the material from this course to support your answer.
Which costs would you take into account in making your decision, fixed costs, variable costs or both? Make sure to explain your analysis in the decision that you have to make.
Consider the model of innovation and technology diffusion with two countries: Analyze graphically the effect of a reduction in the proportion of labour employed in the research sector in the follower country on the technology ratio and on the rate of..
Acme Universal is a micro-cap that had a $3,000,000 drop in taxable income this year. Their drop in taxes was $1,030,000. For each of the following, determine the largest amount that meets the conditions given above.
What is the primary function of banks in the macro economy? How do banks facilitate the circular flow?
Suppose that Congress enacts a lump-sum tax cut of $750 billion. The marginal propensity to consume is equal to 0.75. Assuming that Ricardian equivalence holds true, illustrate what is the effect on equilibrium real GDP.
You have studied the judicial branch of government, with emphasis on the Supreme Court, and the rulings they have made which have had wide-ranging effects on everyone in America. Describe the background of each of the two cases – the reason a case wa..
Explain which industries have substantially reduced fixed cost commitments. Reduction in costs has substantially impaired the ability.
What are the key determinants of the price elasticity of demand for meals served at high-end restaurants?
The Economy is at full employment. Now the government want to change the composition of demand towards investment and away from consumption, without, however, allowing aggregate demand to go beyond on full employment. What is the required policy mix?..
Elucidate what do the opponents of globalization criticize. With regard to consumerism, immigration, and nutrition, where do you find their critiques compelling.
Using appropriate diagrams and notations,carefully explain the relationship b/n elasticity, total revenue and marginal revenue. 2,discuss the uses of elasticity of demand.
What is profit-maximizing level of hiring for firm. How is it determined. What is equilibrium quantity of labour hired in market. Does it make sense given number of firms.
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