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A survey shows an increase in drug use by young people. In the ensuing debate, two hypotheses are proposed: (1) reduced police efforts have increased the availability of drugs on the streets and (2) cutbacks in education efforts have decreased awareness of the dangers of drug addiction.
a. Use the model of supply and demand to show how each hypothesis could lead to an increase in the quantity of drugs consumed (you should draw two different graphs and analyze each hypothesis separately).
b. How could data collected on the price of drugs help us to distinguish between these two explanations?
Explain how software entropy is a major issue especially in low income countries where standards are not adhered to.
Suppose you are an advisor to President Obama. Illustrate what fiscal policies would you put in place.
Define what is the money that a consumer earns from either work or investment such as dividends distributed by companies to its shareholders and the gain realized on the sale of assets such as a house.
Consider the market for tuna, which is a perfectly competitive market. The long-run equilibrium price is $3 per can of tuna, and the long-run equilibrium quantity is 600 million cans per yr. Suppose the Surgeon General issues a report saying that ..
A firm uses a single plant with costs C = 160 + 16Q + .1Q 2 and faces the price equation-Find the firms profit maximizing price and quantity. What is its profit?
Assume that the long-run aggregate supply curve is vertical at Y = 3,000 while the short-run aggregate supply curve is horizontal at P = 1.0. The aggregate demand curve is Y = 2(M/P) and M = 1,500. If the economy is initially in long-run equilibri..
1. Suppose an investment has three possible outcomes. There is a 50% chance that it brings a profit of 4,000,000. There is a 40% chance that it brings a profit of 1,000,000. There is a 10% chance that is brings a profit of 0. What is the expec..
A country has the per-worker production function, y=5k1/2, where y is the output per worker and k is the capital- labor ratio. The depreciation rate is 0.15 and the population growth rate is 0.05. The saving function s=0.2Y where s is total nation..
Karen has kept her entire life savings, $50,000, in a floor safe underneath her bed. This morning, she make a decision to deposit her savings in a checking account at Cambridge Bank.
Is Guatemala debt makes if the government runs a balanced budget in both a and b.
(Business Behavior and Public Policy) Define market power, and then discuss the rationale for government regulation of firms with market power.
Classes can be defined in class diagrams such as a detailed DCD. A class diagram describes the attributes and operations of each class in detail. It also describes the relationships between classes. A well-designed, detailed class model is essenti..
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