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(a) What impact does the federal government's subsidy of 38 cents per litre on ethanol production have on the market for ethanol in Australia? Will the producers of ethanol necessarily be 38 cents per litre better off because of the subsidy?
(b) Ethanol or alcohol is a substitute fuel for petrol, and it has been added to petrol supplies by some retailers. What might have motivated the government to grant a subsidy to ethanol producers? In your opinion, does the subsidy have any economic merit?
(c) Using an economic model that includes both a typical firm/farm in a perfectly competitive market and market supply and demand curves, explain what will happen to the equilibrium price for pork and economic profits of firms/farms in the short run and in the long run.
What is the relationship among Japan and Korea's unemployment. What Trends do you see in the data set.
If graphed, would the curve for this equation slope upward or slope downward and are the variables C and Y inversely related or directly related?
Assume that capital and labor both exhibit diminishing marginal returns, so that capital can be substituted for labor in the production process (and vice versa), but capital and labor are not perfect substitutes. How would such a tax affect the rel..
explain briefly what is happening in this economy before and beyond the equilibrium output level point "a". The equilibrium output is the level of output at which the 45-degree line intersects the planned expenditures line.
"Pumping the price war is Borders Rewards, the loyalty program that Borders Group introduced at the start of the year. Members get weekly coupons via e-mail and a ‘personal shopping day' when they can save 10 percent on most purchases on a day of ..
Holding other factors constant, will the quantity of investment spending increase more in the closed economy or in the small open economy Explain. Assume prices are flexible and that factors of production are fully employed in both economies.
Which statement best summarizes Friedman's views on the role of monetary policy? Monetary policy should best be conducted by: 1.controlling the price leve
questiontheprudentialbankofcanada pbc currentlyhas2000 in cash reserves53000 in loans50000
A monopolist has a constant marginal and average cost of $10 and faces a demand curve of Q D = 1000 - 10P. Compute the monopolist's profit-maximizing quantity, price, and profit.
The information below explains the real GDP per capita for the country of Utopia for the period of 1975 to 1991.
Which statement is not true regarding risk? the expected return is usually not the same as the actual return a key to assess risk is determining how much risk an investment adds to a portfolio some risks can not be decreased or mitigated by the fina..
If I told you that GDP was forecast to rise by a bit more than 3% over the next year, what would that mean to you? What should you be asking about the forecast?
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