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Normal and inferior goods are differently impacted by recessions. Examples include new cars versus fast food. The textbook examples include jewelry, gourmet pet food, dollar general stores.
For this assignment, research four other examples of inferior goods. In addition, discuss how revenues of inferior goods producers are expected to be affected by economic recessions and expansions.
Circular flow diagram: Include the government sector in your explanation, a description of the roles that each participant plays in the economy, and how the different sectors interact in the markets.
Given the following model: Y = C + I + G + (X - M). Suppose that : Autonomous Consumption = $ 500 MPC = 0.75 Taxes = $ 400 Investment = $ 500 Government Spending = $ 1200 Exports = $ 300 Imports = $ 500. Explicitly find the necessary change in G to g..
If the market premium is 11.56 percent, the risk-free rate is 4.06 percent, the inflation rate is 1.46 percent, and Middlefield Motors common stock has a beta of 0.52, then what is the expected return for Middlefield Motors stock? Answer as a rate in..
In 2008, inward FDI accounted for some 63.7 percent of gross capital formation in Ireland, but only 4.1 percent in Japan (gross capital formation refers to investments in fixed assets such as factories, warehouses, and retail stores). What do you thi..
You have studied the legislative branch of government and the wide range of powers held by the House of Representatives and the Senate. List five powers or duties of one or both houses of Congress and discuss each of the five, in a few descriptive se..
Suppose that an excise tax of $2.80 per unit is charged to the buyers in the market of part b. Find the effect on the equilibrium quantity traded and market price. Find the effective (after-tax) price buyers pay. Compare the buyers’ burden from the t..
What approach has become an effective means of achieving environmental goals at the least cost to society?
In a standard supply and demand labour model, firms "demand" labour while workers "supply" labour. Let's think about a labour market that is in equilibrium, with a wage of $20 per hour and with 14 million individuals working out of a total of 16 mill..
Suppose the USA and Canada are considering to trade. Assume there are only two goods in the economy: wheat and corn. The table below illustrates what each nation can produce in a given year.
A firm is currently producing 80 units of output. At this level of output produced, P = 150 and ATC = 120. Also assume that MC = 130 and MR is constant at all output levels and equal to 150. Is this firm making profits? If so, what are these profits?
During the 2012 presidential election campaign, Texas Governor Rick Perry criticized the actions of the Fed Chair Ben Bernanke. He Argued that, "Printing more money to play politics at the particular time in American history is almost treasonous in m..
Nancy's Notions pays a delivery firm to distribute its products in the metro area. Delivery costs are $36,000 per year. Nancy can buy a used truck for $7,000 that will be adequate for the next 3 years. What is this investment's internal rate of retur..
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