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Predict what will happen to interest rates on a corporation's bonds if the federal government guarantees today that it will pay creditors if the corporation goes bankrupt in the future. What will happen to interest rates on Treasury securities?
Suppose that due to a new government study, consumer preferences for chicken suddenly increase. In the model of consumer theory, this would be represented by, During the 1990s, some countries lifted price ceiling on eggs.
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases
Hospital administrators sometimes complain about a "shortage" of nurses. The shortage is the result of a higher wages that occur in the competitive market and could be eliminated if nurses earn wages closer to their MRC.
Compute real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow? Compute the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase?
Calculate what would be the minimum annual vehicle use in km/year that would justify the choice of a diesel engine car over the petrol version? Does this correspond to your answer to 4) above?
For each of the following, is the business a price-taking producer? Explain your answers. A cappuccino café in a university town where there are dozens of very similar cappuccino cafés
Rabi Abdullahi and other Nigerian children filed a suit in a U.S. federal district court against Pfizer, alleging a violation of a customary international law norm prohibiting involuntary medical experimentation on humans. Did Pfizer violate any e..
Ajax, Inc. has appointed you to examine the demand for its line of telecommunications devices in 35 different market areas.
In a separate group discussion board, present two arguments. The first should argue in favor of the proposed merger, from the perspective of the firms. The second agrues against the proposed merger from the perspective of the broader public intere..
Are people helped more if production results in a loss than if it leads to profit? Is there a conflict between production for people and production for profit?
Describe how market structure affects market performance and conduct. Recognize three types of government regulation that aid to enhance market performance
An oligopolistic firms's demand curve will be kinked at the current market price if: a. firm acts as a price leader in the industry, b. the firm produces a differentiate product,
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