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1. Why doesn't the United States just give its chop surpluses to poor countries? What problems might such an approach Crete?
2. If two-third of all U.S. farms fail to earn a profit, why do they stay in business?
3. You need a government permit (allotment) to grow tobacco. Who gains or loses from such regulation?
Explain why Consumer Preferences may influence the own price elasticity of demand for a commodity.
Interview a small business owner and ask him or her about both the positive and the negative role of government in their business. Write a 2 page summary of your interview and include the questions you asked.
The Sterling Corporation makes and sells motorcycles. The total cost of each cycle is the sum of the costs of frames, assembly, and engine. The firm produces its own engines according to the following cost equation: Find the firm’s profit-maximizing ..
Money Demand =8750-500i Loanable Funds Demand = 2000 –100i Initial Reserves: $500 Y1=15600 Y2=14000 Reserve Ratio: 8% MPC=0.8 Tax Revenue: $1100 Govt Purchases: $1000 Suppose the Government is implementing fiscal policy. What is the new level of Gove..
Illustrate what is the effect of Westland's expansionary monetary policy on Eastland's nominal exchange rate in the short run and in the long run.
The problem of _________________ arises when an antique dealer knows more about the quality of an item than the potential buyer, and as a result the buyer with less knowledge must worry about ending up at a ________________.
q1. why do proponents of active policy recommend government intervention to close an expansionary gap? briefly
Consider this natural extension of stripped down poker game we examined in class. Initially each player puts a dollar in the pot. Then each player is dealt; each player’s card is equally likely to be high or low, independently of the other player’s c..
Assume that the price of Smartphone’s increased from $420 to $444 per unit. The manufacturer decides to supply 15,000 units instead of 12,000. Calculate the price elasticity of supply.
You are the manager of a firm that plans to expand the human resource base of its operation by hiring additional business school graduates over the next few years. That same article reports that the shakeup of upper-management is over at U.S. firms, ..
If a $24 per share stock has a P/E ratio of 20 and pays out 40% of its profits in dividends, how large is its dividends? Also what is the implied rate of return?
Italians focus on past; Americans focus on present. Italians therefore should generally be more resistant to change efforts than Americans. Does culture influence how change efforts will be implemented.
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