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Q1. You buy a season pass to the philharmonic symphony hall. You paid $250 for five performances. What is the money cost to you of sleeping through one of the performances? Explain.
Q2. Suppose a country increases government purchases by $100 billion. Suppose the multiplier is 1.5 and the economy's real GDP is $5,000 billion. Which direction does aggregate demand curve shifts and how much?
Q3. The type of manuscript for this book was typed for free by a friend. Had I hired a secretary to do the same job, GDP would have been higher, even though the amount of out-put would have been identical. Why is this? Does this make sense?
Proposals for modifications of the law are formulated by committees. Under the closed rule, the legislature may either accept or reject a proposed modification, but may not propose an alternative.
If the government uses a tax to get producers to internalize their externality, what is the net price received by producers.
Suppose that the US government determines that cigarette smoking creates social cost not reflected in the current market price an equilibrium quantity of cigarettes.
Hiro Nakamura is CEO of the Cola King Bottling Company, a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals
Given your understanding of bond markets, what signals is the the bond market sending in response to the downgrade. Is this problematic.
Represent graphically the effects of an expansionary monetary policy and a contraction fiscal policy in the IS/LM/FX model.
Which of these same curve would shift as a result of the per-burger tax. Curves average fixed cost,marginal cost would shift as a result.
Using the calculations from part a, and the methods described in class, calculate a 99% confidence interval for the population mean forecast, where the population 3 would consist of all economists.
The production process requires labor and capital as inputs. Labor costs $6 per labor hour and capital costs $12 per machine hour.
Now suppose the factory develops an innovation that allows it to produce a shirt for the equivalent of 1 loaf of bread. What is the new radius of the factory's market area.
Select the most serious disadvantage of globalization (in your opinion) and make at least one recommendation
How many popsicles will be sold/supplied each day in the short run if the price rises to $4 each per day
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