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Suppose the domestic appliances industry faces severe foreign competition, and asks you to prepare a position paper its lobbyist can use to seek government assistant. Contrast the consequences of imposing a quota, an import tariff and negotiating a VER.
hat is your expected utility without insurance? Suppose you can buy insurance that will cover the medical expenses but not the foregone part of your salary. How much is an actuarially fair policy, and what is your expected utility if you buy it?
Suppose that there is an "inflation scare," that is, suppose market participants increase their expectations of future inflation.
Make an example of a comparative advantage model by 'choosing two countries and two products.
Find the optimal (profit maximizing or cost minimizing) output of each firm. Find the price that each firm charges at the when producing the optimal output.
Discuss how a change in price affects total expenditure by filling in each cell with resulting change in total expenditure.
Describe the law of diminishing returns. Then discuss why you agree or disagree with following statements.
A monopolist faces the demand curvep =11 - Q , where Q is measured in thousands of units. What is the monopolist profit maximizing price and quantity? What is the profit?
What distinguishes money from other assets in the economy? What are demand deposits, and why should they be included in the stock of money?
Plot the wage- setting and price setting equation or a property labelled graph and identity the nature rate of unemployment.
Consolidated Drugs, Inc. has spent $4 million developing and testing a new anti-aging drug. Management now estimates that it will cost $2 million to produce and market this new product.
What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic? Explain law of demand with the help of a demand schedule and demand curve.
What is the growth rate of nominal GDP in the economy?An adverse supply shock raises the inflation rate associated with every output ratio by 3 percentage points. Draw the new short-run Phillips Curve.
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