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PART-A
1) Why is the right of property an essential characteristic of a market system
2) Rivalry and excludability are two characteristics of goods that are produced through the competitive market system. Compare and contrast the difference in private and public goods based on these two characteristics. Then, explain the concept of free-rider problem with public goods.
3)How do economists distinguish the absolute and relative sizes of the United States public debt? Why is the distinction important?
Part B
1. State At least one economic benefit to increase international trade.2. Why might a corporation prefer to obtain financing through bonds instead of stocks? In contrast, why might a corporation prefer to obtain financing through stocks instead of bonds?3. Is a credit card considered to be money? Explain.
4. Explain what is meant by command economy.5.6. Why does completion force firms to use the least-cost, most efficient productive techniques?7. Explain the aspects of expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate?8. When measuring the GDP for a particular year, why do economists include only final goods? Why don't they include the value of stocks and bonds sold?9. What is meant when economists say that the Federal Reserve bankers' banks?10. What is the effect on the money supply when a commercial bank buys government securities from the public?
Since the cash flows compose a gradient series followed by a uniform series, solve the problem using those factors. Determine the FW of the cash flows.
A newspaper article once reported that U.S. economy was experiencing a low rate of inflation. Why does inflation affect increase in Social Security and or profits.
Brand X contains 20, 2 and 1 units of the minerals, while Brand Y contains 4, 1, 2 units of the minerals respectively. Brand X costs $18 per kg while Brand Y costs 6 per kg.
Illustrate what are the consumer surplus, producer surplus and the social welfare in the market.
Illustrate what is the Consumer Surplus in the market. Illustrate what is the Producer Surplus in the market.
Compute the resulting dead weight loss (DWL) inefficiency from the monopolistic optimal outcome.
Explain the multiplier concept as it applies in this case. Illustrate what are the qualifications and limitations of the Multiplier Model.
specific examples of what would affect each, and a discussion of why it is more accurate to estimate both when trying to determine a country's economic success.
Illustrate what is the difference among the Marxist also the Value Conflict approach to social problems
Assume that the firms act independently as in the Cournot model i.e., each firm assumes that the other firm's output will not change.
Why might consumers’ price elasticity for ice cream cones once they are in an ice cream store be .20 and their longer-term price elasticity be 1.2?
how much does the total amount of deposits in the banking system increase? By how much does the money supply increase. In the u.s. today, money includes which of the following items federal reserve bank notes in citibank's cash machines.
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