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Suppose that the current (first) generation consists of 1 million people, half of whom are women. If the total fertility rate is 1.3 and the only way people die is of old age, how big will the fourth-generation (the great-grandchildren) be? How much smaller (in percentage terms) is each generation than the previous generation? How much smaller (in percentage terms) is the fourth-generation than the first generation? Are you surprised by how quickly the population declines?
What other economic factors are affected when taxes are raised or lowered, and how are they affected? Should the government increase tax rates on everyone as a way to equalize incomes and wealth?
Explain the ways in which Fiscal Policy and Monetary Policy interact by using Keynesian IS and LM curves. Discuss the impact of an expansionary Fiscal Policy and Monetary Policy on the overall level of economic activity. Include the conditions in whi..
Let's say your company sells units of salt for $1.00 and wants to increase its revenue by raising the price to $1.20 per unit. We know, from the table on page 102, the price elasticity of demand for salt is 0.1. A member of marketing says that means ..
Mal Reynolds borrows $320,000 from the Independents Free Bank to buy a used spaceship. The bank charges an interest rate of 12%. Ten years later, the Bank demands repayment in full, including all accumulated interest. There were no payments along the..
Which market model appears to best explain the behavior: Chinese cooking is the most popular food in America that isn't dominated by big national chains. Chinese food is typically cooked in a wok that requires high heat and a special stove. Small mom..
In Canada, where land is cheap, the ratio of land to labor used in cattle raising is higher than that of land used in wheat growing. But in more crowded countries, where land is expensive and labor cheap, it is common to raise cows by using less land..
The GDP deflator in 2000 is 100. The GDP deflator in 2010 is 127. If real GDP in 2000 is $10 trillion and nominal GDP in 2010 is $14 trillion, how much has real GDP grown over that time period?
Present a one-factor Ricardian model of two countries, A and B, trading two goods, X and Y, and discuss the gains of trade generated in this model.
Consider a market with a demand curve of P=24-2Q and a supply curve of P=3+Q. Calculate Consumer Surplus. Consider a market with a demand curve of P=24-2Q and a supply curve of P=3+Q. Calculate Total Surplus. Consider a market with a demand curve of ..
When price of gasoline increases significantly, why should the market price of small automobiles (e.g. Mini Cooper, Smart Car, etc.) also increase? In addition to showing the demand-supply graphs, also explain the reasons for any shift in supply and/..
Calculate and interpret the own price, cross price, and income elasticity of demand.
Our desires and satisfactions are often relative not only to what others have but also to what we ourselves have become accustomed to. A small amount of tasteless food can be the source of immense satisfaction to a very hungry person. The marginal co..
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