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In the short run, prices may rise faster than costs. This chapter discusses why this might happen. Suppose that labor and management agree to adjust wages continuously for any changes in the price level. How would such adjustments affect the slope of the aggregate supply curve?
Draw a indifference curve and degree of substition betweem goods: When the two goods are imperfect substitudes for each other, and assuming diminshing marginal rate of substitution.
Physical capital, Natural resources, Human Capital and Technical Knowledge, should it be Government policy to subsidize the production or acquisition of all or these?
Assume you were appointed economic adviser to a less-developed nation in Africa. The nation seeks to encourage capital formation and wants to increase the rate of saving.
Suppose that real GDP per hour of work grew by 6 percent last year and the capital per hour of work grew 9 percent. Using the one third rule, by how much did the increase in capital per hour of work increase real GDP per hour of work?
Explain how many major wireless phone handset manufacturers are there. What is the market structure. What pricing strategies do wireless phone handset manufacturers use.
If the local car wash changes its price for a supreme wash from $13 to $16 and the number of customers change per day from 50 to 40, what is the price elasticity of deman for this service? Is the demand for this service relatively elastic or rela..
Canada, the US and Mexico are clearly separate countries. Does this information alone imply a lower standard of living in each of three nations compared to the condition where they are united into a single new country?
Make a schedule showing total product, average product of labor, and marginal product of labor using a range of labor inputs
Given the industry's concern that workers shirk, they start employee at $10 and increase the pay by $0.40 each year they are on the job.
Explain why is efficiency lost at the extremes as when substantially more of one good and very little of another is produced?
The Yankees have determined that there are 3-groups of purchaser for their tickets. They have determined that the price elasticity of demand for group one is -1.02,
Someone prepare the claim that immigration must always be good for the economy because the increased supply of labor will result in a higher GDP.
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