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Private ownership in the market system is believed to enhance innovation and faster growth than in the command economic system. With examples, explain why or why not this statement is true.
Suppose the economy is experiencing a recession and high unemployment. What would be the interpretation of how an expansionary monetary policy would address this problem?
What type of inflation occurs if workers ask for higher wages and firms must raise product price in order to pay their workers?
The market is in long-run equilibrium. What market structure best describes the pizza market in this town? Explain. What is average variable cost at this output level for each of the four shops? Explain how you derived this result.
First degree price and third degree price discrimination work to increase a firm's profits by more accurately matching willingness to pay to the marginal costs of production. First-degree price discrimination works to increase a firm's profits by con..
The absolute value of Mars' MRS at his current consumption bundle is strictly greater than 2. Mars has convex preferences. Which of the following statements is (are) true? Justify your answer graphically.
Country A and Country B have identical population growth rates of 1 percent per annum, and everyone in each country always works 40 hours per week. Labor productivity grows at a rate of 2 percent in Country A and a rate of 2.5 percent in Country B. W..
A pizza parlor has the following production costs: $4.00 in labor per pizza, $2.00 in ingredients per pizza, $0.11 in electricity per pizza, $2,000 in restaurant rent per month, and $250 in insurance per month. Assume the pizza parlor produces 9,000 ..
Assume that an economy has 1500 workers, each working 2000 hours per year. If the average real output per worker-hour is $20, then total output or real gdp will be?
How many bushels will each of the farmers five acres produce and How much revenue will each acre generate? What are the TR and MR for each acre?
Specify the set of mutually beneficial allocations relative to the initial endowment and illustrate the set.
Illustrate on your graph and in words all important points and areas on the business cycle.
Define the equilibrium of a market. Describe the forces which move a marketplace toward its equilibrium.
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