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1) Explain what is meant by price floors and price ceilings. What are the consequences of a) a price floor that is higher than the market equilibrium price; b) a price ceiling that is lower than the market equilibrium price. Demonstrate your answers graphically.
2) Discuss the positive aspects of the division of labor. Then evaluate the division of labor in terms of what might be some of its disadvantages.
3) What is the meaning of the term "consumer sovereignty?" Demonstrate graphically how the perfectly competitive market system effectuates consumer sovereignty as consumers buy more peanuts and fewer pretzels.
A black market
It is likely that your college tuition will increase an average of 8% per year for the next 4 years. The annual cost of tuition at the beginning of your freshman year in college will be $12000 (A1). How much money will you and your parents have to de..
Can firm losing money go out of business in the short run? If it can’t, explain why not. On what basis does a firm decide whether or not to shut down? On what basis does it decide whether or not to go out of business? If the perfect competitor is los..
what is the growth rate of constant- dollar real gdp using year 1 as the base year? What is the growth rate of constant- dollar ral GDP using year 2 as the base year?
In the simple Keynesian model, if output exceeds aggregate expenditures, According to the Keynesian analysis, as income increases, the marginal propensity to consume will rise. In the classical model, a self-regulating market would. According to the ..
To save on gasoline expenses, Edith and Mathew agreed to carpool together for traveling to and from work. Edith preferred to travel on I-20 highway as it was usually the fastest, taking 25 minutes in the absence of traffic delays. Mathew pointed out ..
Western County Bank is a small community bank that makes a modest profit by providing small business and personal loans to customers within the county and surrounding areas.
What do they perdict will happen to labor market participation rates in the comming years? What impact are these events expected to have on the economy's potential GDP and why?
Explain how Steve Jobs revolutionized 6 industries (personal computers, animated movies, music, phones, computing, digital publishing. Describe his marketing strategy.
Which of these are assumptions of the Modified Accelerated Cost Recovery System (MACRS)? All assets have zero salvage value. All service dates are assumed to be at the end of the purchase year.
find out generalized least squares estimates of the relevant function(s). Illustrate what is the profit-maximizing level of output suggested by the results in part (f).
Considering a machine which will have an estimated service life of 10 years with a salvage value of 10% of the investment cost. Its expected saving from annual operating and maintenance costs are estimated to be $60,000.To expect a 15% rate of return..
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