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Describe the how the Government influences the management of the economy via fiscal policies and taxation? How would the government do with their fiscal policy in the course of a depression?
Consider an economy where, consumer’s utility function is given as U(C,L)=C-(1/2)L2 . where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2. The turnover cost per labor is (0.36)/(w/p). What happens to t as real wage in..
what is the social optimum quantity and price. If the government uses a tax to get producers to internalize the externality what is the net price recieved by producers
What are the main reasons for the existence of financial intermediaries? Define asymmetric information. What is the Asymmetric information problem of lending? Discuss the adverse selection and moral hazard problems of lending.
The Disney Company regularly offers coupons good for discounted admissions into its amusement parks. However, they never offer any discounts on merchandise inside the parks (food; souvenirs; etc.). How can you explain this difference using the concep..
Explain what the terms of trade are in international trade. What is the exchange rate in international trade? What is the difference between a tariff and an import quota? Do you believe the United States should impose international trade restrictions..
Would Americans be better off if they bought less from foreigners? Would employment in the United States increase if we restricted imports with higher trade barriers?
Many automobile manufacturers routinely advertise the safety of their cars, yet airlines generally do not even mention safety in their advertising. Can you suggest an explanation for this difference?
What are the advantages and disadvantages of the installation methods our book describes?
Lee Inc, is considering a robot that will cost $6,000 to purchace. At the end of it 9 year life, it salvage value will be $1,000. The robot will need to overhauled in year 5 at a cost of $3,000. O&M costs per year will be $1,000. The robot will gener..
What is the current plan/bailout for Greece? Which countries and organizations are giving the country money? What are the conditions that Greece must abide by to receive these funds?
A newspaper recently lowered its price from $0.50 to $0.30. As it did, the number of newspapers it sold increased from 240,000 to 280,000. What was the degree of elasticity for the newspaper? Suppose that at a price of $55, 100 units were sold while ..
Explain how many tons of coffee does the United States import. If the world price of a computer is $500, what is the world price of a ton of coffee.
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