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The markets for the factors of production:
What about organization?
What is the role of entrepreneurship in production?
What are the key reasons for income inequality in USA?
How much do you have to deposit today in order to allow 5 annual withdrawals, beginning at the end of year 8, with the first withdrawal of $1000 with subsequent withdrawals decrease at the rate of 5% over previous year’s withdrawal? The interest rate..
Illustrate what are the advantages and disadvantages of having monetary policy in the hands of the Federal Reserve System rather than in the legislative or executive branches.
Calculate a change in the mix of monetary and fiscal policy that leaves output equal to the level it is when M=900 and G=1,200 but in which the interest rate is 3% rather than 5%. Describe what happens to the value of the dollar, net exports, the gov..
Explain how the change in the required reserve ratio would influence the business price levels and consequently the price levels in the economy. Determine the impact the interest rate would have in relation to the copy center's borrowing decision.
Why is there a social cost to monopoly power? If the gains to producers from monopoly power could be redistributed to consumers, would the social cost of monopoly power be eliminated? Explain briefly.
A Bristish pharmaceutical company spent several years and considerable funds on the development of a treatment for HIV patients. Now,with the protection afforded by patent rights,the company has the potential to reap enormous gains.
Why do the owners of rental units reduce their maintenance expenditures on the units when rent controls are imposed? Does their decision have anything to do with whether they can afford those expenditures?
In order to financially stimulate the nation, the Federal government injected $900 billion dollars into the economy. However, the results were less than spectacular. What was the implied change in income as a result of the stimulus package?
Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,200, $10,200, and $16,400 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has deter..
What are the two most important things people consider when they make economic choices? How does getting something for free impact how individuals may value that item?
The Clean Air Act instituted trades between states for SO2 emissions. Several utility companies across geographic borders have engaged in such trades in recent years. Consider a trade between a utility in Wisconsin and the TVA in Tennessee. Assume th..
Two firms, each in a different country, sell homogeneous output in a third country. Government 1 subsidizes its domestic firm by s per unit. The other government intervention, the market has a Nash-Cournot equilibrium. Show that Government 1's optima..
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