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Why should the government intervene in situations of market failure? Should the government intervene if a market is fully efficient, why? What additional rationals are present if there is inadequacy in the market?
If excess profits are taxed away, where will oil companies get the money to fund new exploration and development of oil properties? Does it matter if these price increases are demand or supply induced?
A firm with the ability to affect the price of its product:
Illustrate what is the marginal income product of hiring one low-skilled worker to clear woodland for one month.
Plot (using a spreadsheet or other graphical tool) the following scenarios for per-capita GDP on a ratio scale. Assume that per capita GDP in the year 2000 is $10,000. Use the Rule of 70 to estimate the value of per capita GDP on the graph for the ye..
q1. suppose the general public purchase 500 million in government bonds and pay for them by drawing cheques on their
1. if the 4 firm concentration ratio of an industry is 75 what does it mean?2. explain in game theory how payoff
q.a car manufacturer claims that its vehicles average at least 25 miles per gallon with a population standard deviation
Suppose that full-employment (and full-capacity) output in an economy is $200. If Ca is $150, lg is $50, Xn is -$10, and G is $30, what will be the macroeconomic result?
Based on your own experiences, extend the list of analogies between the human body and the economy as outlined in this chapter. Then, determine which variables in your list are stocks and which are flows.
Suppose you own a home remodeling company. You are currently earning short-run profits. The home remodeling industry is an increasing-cost industry.
The market demand function is Q=80-p. Describe the profit maximizing input use, the output price, and the monopolist's profit.
Go to the Bureau of Labor Statistics website, www.bls.gov/news.release/empsit.toc.htm, and click on "Employment Situation Summary"
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