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If a nonbinding price floor is imposed on a market, then:
a. the quantity sold in the market will decrease.
b. the quantity sold in the market will stay the same.
c. the price in the market will increase.
d. the price in the market will decrease.
Suppose there is a flood in St. Louis, Missouri, that destroys several beer bottling facilities. Which of the following would not be a direct result of this event?
Assume that economy starts at equilibrium and mpc = 0.8. Illustrate what would be effect of a $500 increase in taxes once all rounds of multiplier process are complete.
An assembly-line worker is more likely to exert less effort and produce fewer units when he is paid by the hour than when he is paid based on the number of units produced.
Suppose that your city government is interested in reducing littering. Currently, there is a $100 fine for littering and there is a 10 percent probability of being caught if you litter. If litterers are risk averse, which policy would lead to a large..
Elucidate the capital budgeting process. Comment on the key elements used to gauge capital projects. Evaluate capital investment decisions by using time-value-of-money yardsticks
Discuss which key concepts and topics in this course have made you a stronger candidate to enter the business world.
part a1. russian farmers again have a poor crop. their government has announced that they will not ban exports. this
q.although economists routinely use gross domestic product gdp and other national income and product statistics in
Jack sees commuting by bus and train as perfect substitutes (U = B + T), that is, he would exchange one commute by bus for one commute by train. The price of a bus ticket is $1.50 and the price of a train ticket is $ 2.00. Jack has $6.00 to spend on ..
The minimum wage in California is currently $9.00 per hour. Suppose that in the market for unskilled labor, there is a surplus of labor at that price because the $9.00/hour is higher than the equilibrium wage. using a supply and demand graph, illustr..
If salary and prices are completely flexible, then an unfavorable productivity shock would raise both the natural rate of unemployment and the actual unemployment rate.
Is it possible that both goods are normal? That both are inferior? That good 1 is normal? That good 1 is inferior? That one of these goods is inferior and the other normal?
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