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Suppose that the economy is currently at potential output. Also suppose that you are an economic policy maker and that a college economics student asks you to rank, if possible, your most preferred to least preferred type of shock: positive demand shock, negative demand shock, positive supply shock, negative supply shock. How would you rank them and why?
Explain why this formulation of consumption may provide a more accurate description of consumption than the simple consumption function that depends only on current income.
What is the average fixed cost of producing 4 units of output and What is the marginal cost of producing the third unit of output.
Elucidate how many workers the firm should hire for different values of the wage rate in order to maximize profit.
Which resource of production is the only one which nations can significantly increase in the short term.
How large is the bias in the CPI due to not immediately incorporating new goods.
Suppose the store manager observes that the quantity demanded increases from 700 CD players to 1,300 CD players. Illustrate what is the price elasticity of demand for CD players.
Illustrate what are the main differences between Lenin's theory of how to bring about socialism and that of Bernstein's
Name some of the ways firms attempt to control their costs. Explain Name some of the ways firms attempt to control their costs. Explain how does your firm control costs.
Illustrate what would be the effect of poor weather on the consumer surplus, producer surplus, deadweight loss.
Express Illustrate what will happen also why to the firm's average fixed costs, marginal costs, average costs also profits as the firm makes its choices.
Illustrate what are the benefits also costs to the US economy of labor migration (illegal also legal) into the United States from Mexico.
What is the resulting deadweight loss relative to the competitive outcome. Compute the Lerner Index for the monopoly described in the question above.
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