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The Financial Crisis and the European Debt Crisis
a. What were the main causes for the financial crisis that hit the world economy in 2007- 2008?
b. What caused the European debt crisis? Brieáy discuss the situations in Greece, Ireland, Spain and Portugal - what are the main problems in these economies?
Suppose Acme decides that instead of cutting the wholesale price of the CD players it will offer a $50 rebate to the consumer (that is, the wholesale price is $200.
Explain why is an increase in the number of varieties of a good regarded as a gain from trade. Can you think of economic disadvantages associated with greater product variety.
Assume you executed a 90-day forward contract to exchange 100,000 Swiss francs into US dollars. How many dollars would you get 90 days hence.
Provide the cyclical nature of government tax revenues and spending, how would the resulting budget deficit or surplus vary over the business cycle.
Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of d..
A small-volume foreign auto maker limits the number of its franchised dealers in the United States and gives them exclusive territories. There are also non-dealers who have no official connection with the manufacturer.
A firm has a long-run cost function C1(y) = y^3 - 10y^2 + 30y. 1) Derive the firm's long-run average cost function 2) Derive the firm's long-run marginal cost function 3) Find the level of production with the lowest average cost 4) What is..
Elucidate how tax credit to a business would help to stimulate the economy.
What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low ?
Please comprise in your response, the formulas for this problem among with a detailed explanation of how it is solved, and your rationale for reaching your conclusions.
Assume your boss purchase out every single pizza store in the US. Your cost-demand conditions are as follows: profit maximizing quantity - 60 pizzas; price - 20$ per piece;
A firm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. If the firm's cost and revenue curves are linear, explain how much output must the firm produce to break even?
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