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If government revenues drop significantly (and remember all else stays the same, including government expenditures), what will likely happen to bond prices? why?
An economy at the top of a stock market bubbles will impact consumers by encouraging A. greater consumption of luxury goods and less saving. B. more work and delaying retirement. C. greater consumption of luxury goods and greater saving. D. more inve..
Illustrate how fast will his production and consumption grow over time. Compute the consumption of the farmer in each of the first five years under plans.
Globalization has had a significant impact on the world economy and the economy of the United States. Using economic principles, describe how globalization has affected positively and negatively the economy of the United States.
Several questions in this problem set are based on the 8/19/12 Wall Street Journal article "Cartel Pushes Up Price of Rubber." This article is at the end of the module on Antitrust Policy. Stopping production of rubber-based products and diversifying..
In their last half-century there have been three additional rounds of GATT/WTO negotiations. Discuss the achievements and failures of each of these rounds, and summarize.
The difference between a monopsonist and a monopolist is that. In a perfectly competitive output market, the value of the marginal product of a resource is
Suppose you start telling your friend about the Price and Wolfers finding that NBA referees appear to be racially discriminatory. Your friend looks at their data, and (correctly) finds that white referees call fewer fouls per 48 minutes on black play..
Distinguish between the resources market and the product market in the circular flow model.
Presently, AFC has on its medical staff 10 doctors and 10 nurses. The daily wage of a doctor is $600, whereas a nurse is paid only $200 a day. Write the equation for the medical isocost of AFC.
Describe the Heckscher-Ohlin model (also known as the factor endowment). How does it predict countries will emphasize their comparative advantage?
The initial cost of a pickup truck is $12,859 and will have a salvage value of $4,027 after five years. Maintenance is estimated to be a uniform gradient amount of $181 per year, with zero dollar for first year maintenance. The operation cost is esti..
During the financial crisis of 2007-2008, the governor of the Bank of Canada expressed concern that the commercial banks were "hoarding" cash rather than extending a more appropriate volume of loans. Why might the banks do this, and what is the impli..
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