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In the following situations, explain what is counted in this year's GDP:
a. You bought to new Wii at Game stop last year and resold it on eBay this year.
b. You purchase an Investing for Dummies book at Barnes & Noble.
c. You purchase a historic home using the services of a real estate agent.
d. You detail your car so it is spotless inside and out.
e. You purchase a new hard drive for your old laptop.
f. Your physical therapist receives $300 for physical therapy but reports only $100.
g. Apply buys 1,000 motherboards for use in making new computers.
h. Toyota produces 10,000 new Camrys that remain unsold at the end of the year.
Suppose China wishes to peg the Chinese Yuan to the US dollar at $0.20/Yuan. But, because of foreign funds flowing into China, the Yuan appreciates. How can the People’s Bank of China (China’s central bank) maintain the pegged exchange rate? Is the B..
There are 2 firms to consider here from 2 different industries. Determine the optimal price that both firms should be charging. Articulate which firm is more likely to earn ‘excess profits’ in the long run…and explain why this is your answer using yo..
Suppose that the U.S. the demand for phones is given by P=700-Q that the supply is given by P=200+Q. In Korea suppose the demand is given by P=600-Q and supply is given by P=50 + (Q/2). Please regard phones as a homogenous product. Prices are all in ..
What kind of unemployment do many commentators propose is dominant following the Great Recesison? Explain what’s going on here.
What is the socially optimal (first-best) number of firms? Assuming that the market share of each firm when there are N firms is 1/N , what is the free-entry number of firms?
To ensure that eligible tribal applicants have the opportunity to participate in the Public Assistance (PA) process, PA staff members should:
What assumptions do you make answering this question. Elucidate distortions do you think would appear in the economy if such a tax were introduced.
Unemployment spells and long term unemployment. According to the data presented in this chapter, about 47% of unemployed workers leave unemployment each month. What is the probability that an unemployed worker will still be unemployed after one month..
What is the impact of the trade surplus or trade deficit upon the interest rates and currency exchange rates.
Discuss how deficit spending relates to the economic collapse of the Greece and Spain economies. Relate their economic collapse to U.S. current economic problems.
Explain the meaning of a Nash equilibrium when rms are competing with respect to price. Why is the equilibrium stable? Why dont the rms raise prices to the level that maximizes joint prots? What is the DWL in this model?
If income increases, then the. A decrease in the price of good Y will have what effect on the budget line on a normal X-Y graph? Suppose that consumers' preferences are well behaved in that properties 4-1-4-4 are satisfied. What are the advanta..
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