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Laissez-faire is an economic precept because it is based on a model and normative judgments about the relevance of the model to the reall world. Why?
400 Words..........
Suppose that investment decline by 40 units to a level of 60. What will be the new level of equilibrium income.
Who benefits from a tariff or quota? Who loses? Why would domestic markets benefit from protectionist trade policies? How do protectionist trade policies affect a government’s wealth and fiscal policy?
Consider an exchange economy with two prominent leaders: Romney and Bernanke. Each get utility from destroying jobs, J; and from power, P. What are the market supply functions for power and jobs? What is the income of both, expressed as a function o..
For Firm A, when four units of output are produced, total cost is $175 and average variable cost is $33.75. What would average fixed cost be if ten units were produced.
A simple model of search. Consider an agent who lives two periods. He is unemployed at the beginning of the first period and has a wage offer of w. If he accepts the wage offer w, he will work forever at that wage. How much would the agent value toda..
After a month, the store clerk informs you that the same crate of wine now costs $82. However, there are 7 bottles in a crate. To the nearest cent, determine the average cost of the crate from last month to now.
Two firms compete in quantities, selling identical goods, facing the demand function P(Q) = 130−q1− q2 where qi is the output level of firm i. Assume that firm 1 is more efficient than firm 2, MC1(q) = 10 and MC2(q) = 20. Find the NE quantities of th..
A monopolist faces an upward sloping demand curve. A perfectly competitive firm faces an upward sloping demand curve. A monopolist can increase the price of its product and not lose all of its business.
With flexible exchange rates
Evaluate the financial performance of the company using the information provided in the scenario. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term and how each factor influences manager..
A community ponders implementing a no-smoking ordinance that would eliminate smoking in all businesses, government offices, and public places. Smokers are upset and argue that their rights are being violated by this proposed ordinance. How does the r..
The U.S. Federal government has been running deficits in the hundreds of billions of dollars which means that the U.S. Treasury is issuing hundreds of billions of dollars in new Treasury securities. If this is all you consider, what are the consequen..
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