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Production possibilities curve and points
1. Why does a production possibilities curve bow out rather than forming a straight line sloping downward from left to right?
2. Out of all of the possible production points along a production possibilities curve, which one of those points does a nation select and why?
3. What does the Heckscher-Ohlin Theory say about what determines the trade patterns between countries?
Illustrate and explain the interaction of households, businesses, government and global markets in the circular flow of economic activity.
Elucidate why the Fed must normally add reserves to the banking system via open market operations on most days in order to maintain its interest rate target in the Fed Funds market.
Compute the price elasticity of demand.
Elucidate who decides whether these particular products should continue to be produced and offered for sale. How do these decisions differ between capitalist and socialist systems.
You're the manager of copies are us. The only copy store in town, the carbon copy, recently got bids on adding a colour copier.
Illustrate to what extent is Walmart's financial health affected by fiscal also monetary policy.
Later on evaluating either it should build the company the firm decides that it should:
Elucidate what are the differences among horizontal, vertical, and conglomerate mergers. Is one type preferable from the view of anti-trust policy.
Suppose a monopolist with cost function C (Q) = 3Q selling to 2 segments of consumers where Q is total output produced by the monopolist in both markets. If the monopolist can use a single two-part tariff, compute the two part tariff that will maxim..
Explain why do economists believe that the CPI overstates the rate of inflation
The MorTex organization assembles garments entirely by hand even though a textile machine exists which can assemble garments faster than a human can.
Elucidate how policy would achieve economic growth, and at the same time engage in poverty reduction.
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