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Principles of economic
Price elasticity of demand
One common good that consumers see elasticity in prices is gas. In looking at gas, we see it is a good that many people use. Do you find the increase in the cost of gas will increase the cost of other goods? answer and give and example.
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Assume that two individuals have the similar tastes and the same initial endowments. What can you say about the efficiency of the allocation.
Utilizing the expectations hypothesis and the Taylor rule provide an interpretation of this comment in the article.
Explain the notion of diminishing marginal returns to labor in the Short Run.
Amazon's "autobot" recently recommended a book to one of us titled Quality Maintenance: Zero Defects through Equipment Management. The book's description is "Achieve zero-defect product quality by eliminating the root causes of your equipment defe..
Explain and show graphically how the self-correcting(self-djusting) mechanism works in a recessionary and in an infationary gap. Does the ecoomy have a self-correcting mechanism. What factors (determinants) cause the AD curve to shift
suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete . the firm has fixed costs of $10 million per year and a variable cost of $1 per bag no matter how many bags are produced.
How does capital investment affect the marginal physical product of labor? Does more college education have the same kind of effect? Which is a better investment?
(a) Distinguish between returns to variable proportions and returns to scale. (b) Explain the following concepts:
suppose more home owners cant afford their mortgage and gave up their houses. In the context of the market quantity supplied and quantity demanded diagram, what will happen to both markets in term of Q's, P's and equilibrium.
Monetary expansion causes the present account balance to increase in the short run. Describe this statement. Is the same true for fiscal expansion.
Give me some information on taxing pollution. Discuss it using the ideas of externality, supply, and demand. How do we determine the optimal level of pollution? Is the optimal level of pollution zero Why or why not
What role do imports play in aggregate demand? Under which conditions will changes in imports expand aggregate demand? Reduce aggregate demand?
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