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An article in the Wall Street Journal noted that the demand for Internet advertising was declining at the same time that the number of Internet sites accepting advertising was increasing. After reading the article, a student argues: “From this information, we know that the price of Internet ads should fall, but we don’t know whether the total quantity of Internet ads will increase or decrease.” Is the student’s analysis correct? Illustrate your answer with a demand and supply graph. Based on Martin Peers, “Future Shock for Internet Ads?” Wall Street Journal, February 17, 2009.
Compute the opportunity costs of going to each concert. Based on the Cost-Benefit Principle, which concert is the best choice.
Show long run effect on In Phillips curve diagram. If expectations are rational and increase in money growth is announced, what happens to In short run.
Illustrate which of the following tax systems could NOT be structured to satisfy conditions of vertical equity.
assume which the benefit to the villagers of each additional cow grazing on the commons declines as more cows graze
Do opportunity cost play a role in people's decision to specialize in certain activities. What describe the price at which trade takes place.
Discuss two fiscal policy measures taken by the government that attempted to minimize the recession and provide for economic stabilization when the the economy apparently was heading for recession in 2007.
This deviation from the classical dichotomy and the Fisher effect is called the Mundell-Tobin effect. Explain how might you decide whether the Mundell-Tobin effect is important in practice.
Contraction GAP, Illustrate what does a Contraction Gap imply about the actual rate of unemployment relative to the natural rate.
First National Bank receives a deposit of $5,400. If there is no slippage, explain how much could the money supply expand.
Is it reasonable from an economist's viewpoint to minimize the role of the government in accordance with Nozick's moral argument.
Economic laws are established in order to make successful prediction of the outcome of human action.
For each level of output except zero output, calculate the average variable cost, average total cost and average fixed cost.
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