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How does a generic drug differ from its brand?name, previously patented equivalent? Explain why the price of a brand?name drug typically declines when an equivalent generic drug becomes available? Explain how that drop in price affects allocative efficiency.
Illustrate what would you expect to happen to the total expenditures on good X.
In the country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate?
Suppose that the trade pattern of a country is that it exports foodstuffs and imports fancy sports equipment. Can you make a case that trade acts like a regressive tax in its impact on the distribution of real income and welfare within the countr..
Antitrust authorities at the Federal Trade Commission are reviewing you company' recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power.
Is the compensation scheme at your present place of employment consistent with a reasonable solution to the agent principal problem?
How does this operating objective change the size of the deadweight loss. If you are a "benevolent" manager of a monopoly firm and are interested in reducing the deadweight loss of monopoly, should you maximize profits or maximize revenue.
Plot aggregate demand and long run aggregate supply curves. Show aggregate demand schedule.
Illustrate in the graph below the deadweight loss (DWL) that would result if this monopolist were allowed to operate as a profit maximizing firm without regulation.
Suppose that a delivery company current uses one employee per vehicle to deliver packages. Each driver delivers 50 packages per day, and the firm charges $20 per package for delivery. How many packages per day would each vehicle have to deliver in ..
The losers from this devaluation basically considering its limited turn-in period for the old money.
A nation has a low inflation rate than all growth. It has more rapid economic growth. The central bank does not intervene in the foreign exchange market.
Illustratr what is the Keynesian solution to a recession or depression. Explain how does the Keynesian multiplier work.
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