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Some apartment buildings hold contests, with monetary prizes, among the residents to see who can grow the prettiest garden. Using the concept of positive externalities, explain why it is worthwhile for the landlord to spend the money on these prizes.
Many home improvement retailers like Home Depot and lowes have low-price guarantee polices. Do these types of pricing strategies result in cutthroat competition and zero economic profits?
Are there any examples which you can think of where you, personally, would not experience diminishing marginal utility.
Find the proportions of consumption spending and investment spending in US GDP. What proportion of US GDP is comprised of wages. The information can be found at the BEA website.
Suppose we start at a position where we are at full employment. Explain what effect a contractiory fiscal policy would have on the price level and real GDP starting from full employment equilibrium. What would the effect be if we had and expansionary..
Perfect competition guarantees allocative efficiency. A profit-maximizing monopolist can never be allocatively efficient.
Carson Company is considering a private placement of equity with Secura Insurance Company. a) Explain the interaction between Carson Company and Secura. How will Secura serve Carson's needs, and how will Carson serve Secura's needs
One of major political developments of last many decades is the increasing size and economic or monetary integration of the European Union. Determine what effect do you think this will have on international trade between nations?
Assume a 2 sector economy (where the two sectors are consumption and investment) where C= $100+ 0.9 Y and I=$50
Describe prison labour and elucidate how it affects different cultures also societies and explain the rise and fall of labour in prisons.
The key feature of the production function is that the marginal impact of capital per worker k = K/L on Y/L decreases as K/L increases.
To decrease the federal deficit, government would have to cut back on government buy, transfer payments, or increase taxes. How does the federal deficit affect GDP and multiplier?
Show that, with a linear demand curve, the imposition of a per-unit tax on a monopoly will cause price to rise by less than the tax. Would this be true for a constant elasticity demand curve?
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