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Explain which of the following transactions would be directly counted in 2015’s GDP. In each case, explain whether the action causes an increase in Consumption, Investment, Govt. Purchases or Net Export. If the transaction is not included in 2015’s GDP, explain why not.
(a) You purchase $5000 worth of Google’s stock.
(b) A record company produces 500, 000 CDs of a new artist. Only 100,000 are sold at the price of $15.00.
(c) You purchase a 2011 Lexus for 25,000 and then purchase a set of special tires for $1600.
(d) You fix your friend’s car saving him $300.00 and in return, he paints your house saving you $400.00.
Explain which of the two classmates would you prefer as a partner. Would he also want you as a partner.
Elucidate the relationship between P > AVC and a firm's contribution margin, when a firms is making a decision to shut down operations.
Do protectionist policies benefit producers, consumers, workers, or the government
Here are some hypothetical numbers used to illustrate the ideas of trade-offs, specialization, and comparative advantage. Assume Sri Lanka, using all her resources efficiently, can produce either 1,000 bags of rice OR 3,000 bags of tea. Let's also as..
In perfect competition, where we determine optimal price, does the resulting P1 figure simply mean that when the market is at P1, the firm is maximizing it's efficiency?
What are the positive and negative aspects of budget deficits and surpluses? What policy is best for today’s economy? Explain your answer.
A hearing is scheduled for your company to Current arguments that your industry has not increased its market power through this merger. Can you do this. How. Illustrate what evidence might you bring to hearing.
In 2008, the Board of Directors and shareholders of Anheuser Busch agreed to be acquired by a Belgian Brewer (InBev). Prior to the merger, InBev made many pledges to AB regarding how the company would operate after the merger, how its employees would..
The aggregate marginal cost function for the other manufacturers of polyglot. Illustrate what is the total market Demand for polyglot at the price established by Alchem in Part
Interpret the following graph showing the potential changes in supply of money compared to the demand for money. The demand for money is represented by line MD and the initial supply of money is represented by line MS. If there is no change in the in..
suppose you are the owner-operator of a gas station in a small town. over the past 20 years you and your rival have
how must you consider the issues regarding diminishing marginal returns and economies of scale.
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