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Markets tend to produce:
the right amount of a good exhibiting external costs.
the right amount of a good exhibiting external benefits.
too little of a good exhibiting external costs.
too little of a good exhibiting external benefits.
In an application of the Harrod-Domar model, suppose the only final-goods industry in a country is the making of cotton shirts. The factories, machinery and warehouses used in production were purchased previously and are still worth $3 billion. Each ..
Assuming that the current production rates are maintained at the three assembly plants, which alternative should management select?
What about longer term dynamics of the global economy? What might be those benefits or losses
Illustrate what is most X that can be produced? most Y. Illustrate what is formula for opportunity cost of X in terms of Y in this economy.
A firm has developed a new product for which it has a registered trademark.
decide how line is too long and leave without getting into line. Assume that no car that actually chooses to enter line leaves without service.
In a two firm market, let the total cost of producing a product be 2Qi, the inverse market demand be given by the function P = 20 - Q and the market quantity be equal to Q = Q1+Q2. Assume firms compete in quantities, what is the quantity for firm 1 t..
Assume quantity theory of money holds with constant K and Kf. Suppose Mexico wants to stabilize the exchange rate of its currency with US dollar (dollars/peso). If Mexico has a real GDP growth rate of 6%, what is the money supply policy Mexico should..
Other things equal, increasing home prices tend to:
Assume which one company acquires all the suppliers in the industry and thereby creates a monopoly.
Keynes said it was the stock market crash of October, 1929 that was the trigger mechanism for the Great Contraction from 1929 to 1933. He believed that the crash caused expectations to become catastrophically pessimistic. Use the Keynesian Cross Mode..
Suppose the demand for apartment rentals in New York is Q = 1000 - P and the supply of apartment rentals is Q = 4P. What is the equilibrium price and quantity of apartment rentals in New York?
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