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How does the income approach to measuring GDP differ from the expenditure approach? Explain the meaning of value added and its importance in the income approach. What are the leakages from and injections into the circular flow? How are leakages and injections related in the circular flow?
Assumptions make the nation easier to understand because they simplify reality and focus our attention.
Suppose that a monopolistically competitive restaurant is currently serving 230 meals per day (the output where MR=MC). At that output level. ATC per meal is $10 and consumers are willing to pay $13 per meal. What is the size of the firm's profit
Consider two rms facing the demand curve P = 50- 5Q where Q = Q1 +Q2 . The rms cost functions are C1 (Q1 ) = 20 + 10Q1 and C2 (Q2 ) = 10 + 12Q2. If they collude, how much will each firm produce? What would be each firm's prot?
Illustrate what happens to the equilibrium price and quantity in each market. Which product experiences a larger change in price.
Consider the model of innovation and technology diffusion with two countries: Analyze graphically the effect of a reduction in the proportion of labour employed in the research sector in the follower country on the technology ratio and on the rate of..
Jo Brown’s nursery operation has grown from a small herb plot into a thriving nursery business. There are 10 full-time employees and 20 seasonal (part-time) employees. For the last three years taxable income for Brown’s Nursery has been steady at $35..
As the Asian Financial Crisis demonstrated
Graph the effects on the savings inter-temporal budget constranit. You are required to use the graphical representation of the llifecycle model's inter-temporal budget constraint. Assume a progressive tax system with 2 tax brackets are applicable for..
An increase in the price of sodium carbonate, a chemical compound used in detergents will:
Are capital markets a necessary evil? Can the current capital market structure be fixed? Are there better alternatives? Please elaborate.
Calculate the (point) price elasticity of demand when price is $100. Is demand elastic or inelastic? Calculate the (point) price elasticity of demand when price is $700. Is demand elastic or inelastic?
Briefly explain whether you agree with the following argument: "Unfortunately, Bolivia does not have a comparative advantage with respect to the United States in the production of any good or service."
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