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Q. Suppose you have two goods, ice cream and Kraft Macaroni and cheese (an inferior good to most people). Show graphically what happens when 1) the price of the ice cream decreases and 2) your income increases.
Q. Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30. Explain how would you describe this industry?
Consider the elasticity of supply. In the short run, a elucidate how many popsicles will be sold each day in the short run if the price rises.
Interpret these results. Is profit per employee much sensitive to industry-specific or firm-specific factors for this sample of giant corporations.
Illustrate what are the advantages of using capital in the production process. What is meant by the term "division of labor".
Find out the real rate of interest earned by Albert in each of the three years and his total real return over the three-year period. Suppose that interest earnings are reinvested each year and themselves earn interest.
Interest on the public debt is included as a part of government purchases in the determining GDP may arise since.
Elucidate what impact will this change have on the price level, output, and employment in the short run in the United States.
If consumption and government purchases go up, what happens to GDP in the long run. Show this graphically.
You arranged the subsequent information to use in evaluating the financial feasibility of starting your own agency.
Find out the equilibrium level of GDP. Next find the multiplier for government purchases and fixed taxes. If full employment comes at y+1800, what are some policies that would move GDP to that level.
Assume that over the last twenty-five years a country's nominal GDP grew to three times its former size.
What is the impact of a tax cut in an economy operating under a fixed exchange rate regime on household spending, interest rates.
One important difference between an entrepreneurs also a manager is which the former gets into a market before demand increases, while the later gets into the market after the shift.
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