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Why will there be less crowding out of private spending by government spending the less sensitive consumption, investment, and net exports are to changes in interest rates?
Does a competitive firm’s price equal its marginal cost in the short run, in the long run, or both? Provide specific examples to support your answers. Does a competitive firm’s price equal the minimum of the average total cost in the short run, in th..
q1. according to a study of u.s. cigarette sales between 1955 and 1985 when the price of cigarettes was 1 higher
"The law of diminishing marginal utility states that as an individual increases consumption of a given product within a set period of time, the utility gained from consumption eventually declines” Examine whether the statement above is TRUE or FALSE...
In a market demand and supply equations are: What is producer surplus? What is the consumer surplus? (Please show all your work) What is the total wealth?
Two common drawbacks of Pigouvian subsidy mentioned in the literature are related to monetisation and measurement of social cost (Baumol) and reciprocity of social cost (Coase). What alternatives to Pigouvian taxes are proposed in the literature? Hav..
Plot indifferences curves for U = 0.5, U = 1, and U = 1.5. Based on your plot, would an individual with these preferences view X and Y as (imperfect) substitutes or complements? Using the Lagrangian method, find the optimal quantities of X and Y cons..
You live in a small town with basic medical care facilities and a couple of general practitioner physicians. One of the physicians has said that your cousin needs to be seen by a specialist. However, the nearest specialist is 3000 miles away, on the ..
Since the uninsured and lower income population generally tend to be less healthy than those who are better off financially, an insurance plan for the less-healthy would not be a good business venture. What is the best way to provide health insurance..
A firm charges $800 per unit for its unique solar panel. If total revenue is $56,000 in July, how many solar panels were sold in July? (Hint: How do you calculate total revenue?)
Assume that country A can produce a unit of good X with 1 labor hour and a unit of good Y with 3 labor hours. Country B can produce a unit of good X with 2 labor hours and a unit of good Y with 8 labor hours. Labor is the only resource used. What wou..
Find Q*, P*, consumer surplus, producer surplus, and total variable costs. Make a graph and label it. What is the elasticity of supply at the solution point? What is the elasticity of demand?
Indicate the various components of GDP when it is derived by the resource cost-income approach. Calculate using the resource cost-income approach.
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