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1. Thinking of your own consumer tendencies, provide an example and explain how the law of diminishing marginal utility applies to your personal consumption patterns and how the utility-maximization rule and the income and substitution effects play a role in your shopping at the mall and grocery stores.
2. Is the law of diminishing returns impacted as a result of firms not hiring the best workers that may be available for positions within the firm or organization?
Now you want to "improve" the aggregate production function to increase the supply capacity of the economy. That it, you desire to move the vertical LRAS to the right on the AS/AD diagram.LIST four initiatives that you would focus upon to get the j..
Suppose last year's real GDP was $10,000 billion, this year's nominal GDP is $13,800 billion, and GDP-deflator for this year is 110. Determine the growth rate of real GDP?
You are trying to decide whether to buy some laptop computers for your business in either Canada or in United States. Looking at identical machines on the Dell Canada and the Dell US web sites, you find that they sell for US $2000 (US dollars) in ..
If the Bank of Canada continues to take expansionary monetary policy, how are the unemployment rate and inflation affected? (Use both Phillips curve and AS-AD graphs in your explanation.)
Suppose the government allows imports of rice into the United States. If the world price is $2 per pound, what happens to the price that domestic sellers charge and what is the quantity of imports A) The price that U.S. sellers charge is still $4, ..
The widget market is competitive and there are no transaction costs. Five different suppliers are willing to sell one widget at each of the following prices: $30, $29, $20, $16, and $12. Five different buyers are willing to buy one widget at each ..
A local hardware store is trying to decide whether to stay open. They have found that their industry is extremely competitive and profits have shrunk considerably. Knowing that you have taken an economics course the owners have asked for your opin..
Since January of 2001 the Fed has reduced its Fed funds rate target from 6.5 percent to 1 percent. Nonetheless, the number of people at work is less than
What fiscal policy would you implement and why? Graph and explain the whole situation from start to finish, make up your own numbers. Make up your own MPC from that you will be able to derive the multiplier.
Elucidate why the U.S. would subsidize the short run cost of production for tobacco farmers in foreign countries.
A change in the money supply has no effect on the long run values of the interest rate or real output.
Describe the implications of this economic forecast and the income elasticity of demand for the pricing strategy.
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