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1. Describe the connections between opportunity cost and the production possibilities frontier?
2. What is the relationship between bowed out shape of production possibilities frontier and increasing opportunity cost of the good as more of it is produced?
3. When economists state that the opportunity cost of a product increases as more of it is produced, what do they mean?
Provide two examples of actions taken by a company, government, or organization whose effect is to prevent specific markets from reaching equilibrium. What evidence of excess supply or excess demand can you cite in these examples?
Describe how each of the following will affect the price and quantity of equilibrium. To find out the new values, describe how the supply and/or demand curves will shift in the following cases (if at all).
How would government react to sudden, large changes in the price of a key commodity, such as gasoline, electricity, or prices on stocks on the New York Stock Exchange?
The Aggregate Demand for goods and services in an economy must at every moment equal the value of Real Gross Domestic Product because both are defined to be the sum of (C+I+G+X-IM).
Write down the household's budget constraints for period 1 and 2 and identify the current account.
Future economic glowth
Choose any one topic out of the following , • Water , • Energy , • Agriculture , • Forest
Assume the ratio of deposits that banks hold in the form of reserves is 7 percent. Assume further that people want to hold 8 percent of their deposits in the form of cash.
In the imperfect competitive market of jeans, Lean Jeans, Inc., recently offered rebates of $1 off the regular $50 price. Quantity sold jumped 4 more jeans from the previous 100 figure the previous month.
A manager at strateline manufacturing much choose between twoshipping alternatives: two day freight and five-day freight. Using five day freight would cost $135 less than using two day frieght.
How does competition affect profits and prices? What causes some firms to enter an industry, and others to leave it?
Define the term Consumer surplus, Gien good and Income elasticity of demand using graph and equation.
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