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1- Think about our economy. Irrespective of economic conditions, we consume many goods and services in various quantities. There is a constant allocation and re-allocation of resources. How does this happen? What economic mechanism helps allocate resources to the preferences of hundreds of millions of people? (Hint: Consumer's sovereignty).
2-n light of the underground economy, and other shortcomings of using GDP as a measuring rod, do you think the government should include estimates of the underground economy in its GDP calculations? Discuss the pros and cons. Use references as needed.
What assumptions do you make answering this question. Elucidate distortions do you think would appear in the economy if such a tax were introduced.
q1. are recessions a necessary fact of macroeconomic life? if not illustrate what would it take to eliminate them? if
An economic model and A good economic model
Some people claim that the "economic way of thinking" does not apply to issues such as health care. Elucidate how economics does apply to this issue by developing a "model" of an individual's choice.
Explain how much does consumption change this year in absolute dollars as a result of a $5,000 annual tax cut to your income, if the tax cut.
Elucidate is the efficient yearly output of paper and how can this be achieved.
Using a wholesale cost of $4 per case in each state, calculate the breakeven output quantities for each alternative.
The US government could not pass its annual budget. As a result, the US government has partially shut-down: roughly about 800000 federal employees of non-essential services are out of work
If policymakers want to reach full employment while maintaining balanced trade, what combination of monetary and fiscal policy should they use.
can you think of any financial innovation in the past ten years that has affected you personally? has it made you
what is the diamonds water paradox and how is it
Project B will yield $1.25 million three years from now, and Project C will yield $600,000 for two years, beginning two years from now. If the interest rate is 8 percent, which of these projects should the firm undertake?
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