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1. What type of compensation policy would you expect to observe in an industry with rapidly changing technology? Explain.
2. Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival successfully kept prices at a very high level. You recently learned that your rival retiring and closing his station in two weeks. What should you do today?
3. What is a market failure? Explain how externalities, public goods and asymmetric information are all problems with private property rights.
4. "The government should not be sole provider of a good or service unless there is a compelling reason." What compelling reason? Would you agree that issuing drivers licenses must be left to the government?
5. What does it mean to say "Profit opportunities attarct firms like sharks to blood?
6. Suppose a firm is selling a product for less than a foreign country does in the home country and an antidumping suit forces an end to the practice. Is it possible that the result is a loss in efficiency? Explain.
7. Explain why rent-seeking competition tends to dissipate rents-to drive them down so that there are no abnormal rents.
q.assume that company abc is replacing workers on the manufacturing floor with robots and other machines. company xyz
Explain how do you run an oligopoly to make the largest possible profit. The oligopolistic producer of this vehicle failed to heed market signals. It failed. Can you name the company.
Suppose the money supply is currently $500 billion and the Fed wishes to increase it by $100 billion. Given a required reserve ratio of 0.25, what should it do?
what would your advice be to Congress? You must include the implications (the consequences to business and workers) in your analysis?
A nominal rate of 14% should be used as the MARR. What equivalent annual interest rate is the second contractor offering? Which contractor’s offer would you accept? Repeat the analysis with the NPV technique.
What are the positive and negative aspects of budget deficits and surpluses? What policy is best for today's economy? Explain your answer.
When the prices reduces to $9 the restaurant sells 200 per day. Provide the absolute value of the price elasticity of demand.
Illustrate types of government programs would be most effective in combating each type of unemployment.
Assuming that this is rational behaviour by profit-maximizing "firms" elucidate what economic factors may influence such behaviour.
q1. what steps can a government take to ensure that sustainable development is always considered in assessing which
what changes should they make in government spending or taxes ? what changes should they make if they decide a contractionary fiscal policy is necessary?
The base year is 2009. Real GDP in 2009 was $10 trillion (2009 dollars). The GDP price index in 2009 was 112, and real GDP in 2013 was $11 trillion (2009 dollars). Calculate nominal GDP in 2009 and in 2013 and the percentage increase in nominal GDP f..
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