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To this end how could the Mortgage crisis of the 2000's been avoided if the market was truly efficient and highlight the irrational behavior on three levels that caused the crisis.
Recall our example of an investment of $100,000 in research that yields a pioneering invention that has no commercial value, and a subsequent investment of $50,000 in development that yields an improvement that has commercial value of $1 million. In ..
The demand for cigarettes is price inelastic, but not perfectly inelastic. The supply of cigarettes is elastic, but not perfectly elastic. If there were no price controls or other complicating regulations, what would a model of supply and demand ther..
Government wants to change its spending in order to avoid a recession. If crowding-out effect is always half as strong as multiplier effect and if MPC equals 0.9, by Explain how much does government purchases have to change.
The demand for gasoline is inelastic and the supply of gasoline is elastic.
Assume that grapefruit is an inferior good. Draw a perfectly competitive market for grapefruit and a firm selling grapefruit in the long run equilibrium where price is $1 and the firm’s equilibrium quantity is 50. Explain the following situations gra..
Describe the long-term trends in inequality in the United States using the available measures. What are possible explanations for these long-term trends.
Between 1970 and 1976, average inflation rate of Country X was about 35 percent per year. With that rate of inflation, prices would double about every ________ using the rule of 70.
What does it mean when we say that a firm enjoys increasing returns to scale? What are some factors that contribute to a firm achieving increasing returns to scale (or economics of scale) in the long run?
Who benefits from a tariff or quota. Who loses. Illustrate what are positives and negatives of protectionist trade policies on federal government's part. Which policy is best right now.
Explain supply, demand, equilibrium, surplus and shortage. Explain the non price determinants that can shift the supply and demand curves. Explain the concepts of price ceilings and price floors.
What are the differences between economic and accounting concepts of cost? How are prices determined under perfect competition? How are prices determined under monopoly?
Why might investment not respond positively to low interest rates during a recession? Why might investment not respond negatively to high interest rates during a boom?
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