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Q1. Suppose that two economies initially have the same level of real income and both suffer unanticipated declines in their sales of exports of $50 billion. Country "A" has higher tax rates and a higher level of government spending than economy "B". Otherwise, the two economies are similar in every respect. Which nations will suffer the maximum decline in services as a result of the decline in exports?
Q2. Use the two big questions of economics and the economic way of thinking to answer the following questions about the economic life of a homeless man.Does he face scarcity?Does he make choices?Can you understand his choices as being in his own best interest?Can either his own choices or the choices of others make him better off? If so, how?
Briefly critique the attached article in no more than the equivalent of 3 pages , focusing on the key environmental implications and economic arguments, with your personal reactions included.
At this level of pollution, what is the marginal cost of pollution control.
Visualize you are a manager for good or service used. From results of the deterioration equation, recommend strategies to either preserve demand if an increase over 3 periods occurs or improve demand
Opponents of NAFTA point out that pollution is largely a free good in Mexico also that being free to pollute gives industries in Mexico an economic advantage over those in the U.S. also Canada.
Discuss Soutwest Delta airlines merger and describe the competitive environment within the industry. Is there a dominant firm.
Suppose current interest rate is 5% and you pay $250 for a bond. How much should bond pay you in one year.
Find the level of output with the help of calculus, Qrmax, where total revenue reaches its maximum value.
Discuss the basic way that the modern banking industry work(namely, fractional reserve banking). What impact can this type of banking system have on the supply of money and possibly on inflstion and prices.
Elucidate before economic growth, there were too few goods, after growth, there is too little time.
What would happen to autonomous consumption if household debt fell and the interest rate rose over the same time period?
Suppose the firm chooses this input combination. What is the firm's short run cost function? What are the firm's fixed costs? What are the firm's variable costs?
Explain how would each of these traps impact the production possibilities frontier.
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