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Small firms can discover the abilities of their workers more quickly than large ones because they can observe the workers more closely at a variety of tasks. Does it then make sense for people with high abilities to go to small firms?
John is willing to purchase 7 computers. This scenario displays the law of demand. Do you agree or disagree.
EBay claims that it has only a small problem with fraud also misuse of the sytem. Does this imply that it is overinvesting in addressing potention contracting problems.
Assume that demand for labor by firms is given through L=1000-100W and the supply of labor from workers is given by L=-400+100W, where L represents the number of workers and W is the wage in this labor market.
A firm uses a single plant with costs C = 160 + 16Q + .1Q 2 and faces the price equation-Find the firms profit maximizing price and quantity. What is its profit?
Assume that the Fed perceives inflation on horizon and decides to follow a contractionary monetary rule. Describe the effects of this rule on the exchange rate of dollar.
Since fall of 2004, increasing oil prices over $70 per barrel in spring of 2006 have frequently ended stock market rallies and led to refuse in all major stock indexes.
Suppose an economy only produces single consumption well. Consider permanent upward shift of production function. Graphically describe the effects on each of following:
Assuming that there are only two goods, and the other good (food) is capital intensive, show the equilibrium points of production and consumption in ALFA, before and after trade.
Which is a real life example of a market that is close to perfect competition. computer monopoly, an oil and gas cartel or else.
Illustrate what is the difference among National Income, Gross National Product, and Gross Domestic Product? Why do most countries now use GDP as a measure of national output?
Consumption accounts for about 60% of GDP, while investments accounts for about 20% for GDP. But many economists think that, to understand economic recession, it is more significant to look at investment than consumption. Why?
Using the theory of oligopoly and the concept of prisoners dilemma, explain why the cigarette companies did not cut on advertising on their own to increase their profits before the law went into effect?
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