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Why do economists include only final goods and services in measuring GDP for a particular year? Why don't they include the value of used goods, i.e. cars, furniture, etc., bought and sold? Define net exports. Explain how US exports and imports each affect domestic production. How are net exports determined? Explain how net exports might be a negative amount.
In which system are bankruptcy courts located?
Calculate the deadweight loss (DWL) from the price ceiling. Find a price floor that will result in the same magnitude of DWL. [Note: P = price per unit; Qd = hundreds of units demanded; Qs = hundreds of units supplied]
A change in the discount rate shifts the supply of reserves. Friedman's theory of money demand is more complex than Keynes's.
For the Cobb-Douglas production function in Problem 6.7, in can be shown (using calculus) that. If the Cobb-Douglas exhibits constant returns to scale (a+b=1), show that Both marginal productivities are diminishing.
price ceiling and price floorintroductionprice ceiling is the law that sets a maximum price below the equilibrium
Explain the differences of Marshallian, Hicksian, Slutsky demand curves. You can explain verbally or you can use the graphs. Suppose that the price of good 2 increases from the initial prices. Explain Slutsky substitution effect and Hicksian substitu..
A company can earn 6% on their investments. How much should the company invest today to be able to fund two $2,500 projects each year for the next 10 years?
Competitive firms will always try to earn more than a normal profit by doing the following, except
If direct material and labor cost is not the major component in the cost structure, it is more appropriate to use activity based costing to allocate the overhead cost. By life cycle viewpoint, salvage value summarizes all the costs and revenues occur..
q1. as long as firms are price takers in the labour market it doesnt matter if firms are monopolists in the output
q.the federal government occasionally goes through the process of reauthorizing and modifying the state childrens
Through the summer and fall of? 2008, as the global financial crisis began to take? hold, international financial institutions and sovereign wealth funds significantly increased their purchases of U.S. Treasury securities as a safe haven investment. ..
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