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Q. Why do national income accounts compare market value of total outputs in various years rather than actual physical volumes of production? Illustrate what problem is posed by any comparison over time of market values of various total outputs? How is this problem resolved?
Imagine that you were the president of an emerging country that is trying to reduce the number of its imports
When a company's depreciation is larger than its gross investment, net investment becomes negative and the firm's capital stock decreases.
Statistical analysis indicates that a=0.8 and b=0.3. The firm's owner claims the plant has increasing returns to scale.
Utilizing the preceding write equations for total cost, average cost, and average variable cost.
Fill in the column of marginal products. What pattern do you see. How might you explain it. Compare the column for average total cost and the column for marginal cost. Explain the relationship.
What three factors determine whether two economies with separate fiscal and monetary authorities should form a currency union.
Illustrate what is the level of consumption at the equilibrium level of income. Compute the marginal propensity to save for this economy.
critically discuss the pros and cons of this contractual arrangement vis-a-vis the alternative of outsourcing the teaching to an outside fi rm.
What are the strengths and weaknesses of the measure of welfare used by many economists: consumer welfare plus producer surplus.
Which in turn depends on the animal's access to grazing which depends on the number of llamas sent to the commons.
What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitute's one product for another. Use examples to illustrate.
Find the mean and standard deviation of team payroll for the 14 American League and the 16 national League teams.
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