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If immigration raises the labour force, what is the expected effect of this on the return to labour (real wages) and capital (rental rate) according to the neoclassical theory of income distribution?
Explain why there is a natural unemployment deficit. Compute the amount of the natural employment deficit in terms of both billions of dollars and as a percent of natural real GDP.
State whether the following firms are experiencing economies of scale or diseconomies of scale.
How will commercial airlines respond to the threat of new $27,500 fines for keeping passengers on the tarmac for more than 3 hours? What inefficiency will this create? I recently sold my used car. If no new production occurred for this transaction, h..
q. assume that the production function for all countries is given by y ak13. assume that the depreciation rate d and
Explain and graph how the economy can “fix itself” and move to the long run equilibrium? Will the price level at the long-run equilibrium be greater than, less than, or equal to 110?
When transaction costs are low enough, efficient resource allocation will follow regardless of the particular assignment of property rights. When transaction costs are high enough, efficient resource allocation requires assigning property rights to t..
An accident occurred and an individual lose a leg. Show diagrammatically the utility functions before and after the accident. Show that if you were the Utilitarian, you would give more income to the individual after the accident, but that even after ..
Assume that Wal-mart is the only employer of retail workers in a small town in Indiana. As a local non-discriminating monopsonist, Wal-mart faces a labor supply curve given by: E = 10W –100, where E is the number of workers hired each hour and w is t..
q.an economy is described by the following equationsc1800 0.6 y-tip900g1500nx100t1500 y9000a. find a numerical
The market for soda has supply and demand curves given by, What is the equilibrium price and quantity for sodas? Returning to question 1, suppose the government put a tax on soda of $0.50 per can to be paid by consumers. Graph the before and after ta..
A winery estimates that the demand for its fine Owner's Select, has an income elasticity of 2, where income refers to the income per capita of its customer base.
During a business cycle, typically output can be below the level consistent with the secular growth trend: A. only at the peak (top) of the cycle. B. only at the trough (bottom) of the cycle. C. whether the economy is expanding or contracting. D. at ..
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