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Part of the debate among economists on US airline deregulation in the 1978 involved the theory of contestable markets. List the four characteristics of contestable markets and evaluate how well airline markets meet these criteria.
Suppose you want to estimate the following labor supply equation: You gather data on US workers aged 22 to 55 from the Current Population Survey. You define the Average Hourly Wage as self-reported total annual labor income divided by self-reported t..
Katie's project has a five-year term, a first cost, no salvage value, and annual savings of $20 000 per year. After doing present worth and annual worth calculations with a 15% interest rate, Katie notices that the calculated annual worth for the pro..
Using the IS-LM model derive graphically derive the aggregate demand function. Fully explain each step of your derivations.
In order to create an effective incentive compensation scheme, you must have. Principal-agent problems: Principal-agent relationships:
Draw, side by side, a diagram of the market for money and the aggregate supply/ aggregate demand to illustrate how inflation is created. Initiate the process in the AS-AD diagram with negative supply shock that the central bank decides to "accommodat..
Explain what is the maximum amount of new loans that this bank can make. Show in column 1 how the bank's balance sheet will appear after the bank has lent this additional amount.
Illustrate what major legislative actions has congress taken As 1993 to reduce size of Federal deficit. Why process is politically painful to Congress.
By what factor does this firm mark up its price over marginal cost? c. Do you think this firm enjoys much market power? Explain.
If there are n firms in the marketplace also every firm charges p. Illustrate what is total producer surplus.
In Mexico in 1950, the richest 5% earned 40% of the income and the poorest 40% earned 14.3% of the income. In 1957, the richest 5% earned 37% of the income and the poorest 40% earned 11.3% of the income. In 1963, the richest 5% earned 28.8% of the in..
If price lowered from $10 to $8 and quantity demanded rose from 50 to 51, calculate elasticity; state whether demand is elastic, unit elastic or inelastic and find out how much total revenue was when the price was $10 and $8.
Compute the price elasticity of demand for good X between the two prices on the demand curve. Describe the price elasticity of demand for good X.
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