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Suppose that advances in genetically modified crop technology enable farmers to produce greater amounts of agricultural products on the same amount of land. Explain how this event would affect demand, supply, price, quantity demanded, and quantity supplied in the global market.
Consider the following production function. Y=K^5 (AN)^.5 , where both the population and the pool of labor are growing by rate n=.07, the capital stock is deprecciating at a rate of d= .03, and A is normalized to 1. What is the form of this producti..
In what way (or ways) is the current Knowledge Revolution a child of the Industrial Revolution? Is this a new revolution or simply an extension of the 18th-century revolution? Given the history, is it perhaps more appropriate to call the current revo..
Which of the following are the ideal conditions for a laissez-faire economy?
Before output has had time to adjust, by how much is disposable income reduced. Compute the resulting change in consumption expenditure.
The consultants of Allcare Family Clinic (AFC) have determined that if the clinic hires two more practical nurses, without any other changes in its operation, it can increase the number of patients it treats during a week from 200 to 220. The weekly ..
Rent seeking:
On Friday, August 5, 2011, the rating agency Standard and Poor's downgraded the U.S, from AAA to AA+. However, the other major rating agencies -- Moody's and Fitch -- retained the AAA status for the U.S.
Which of the following uses of tax revenues collected by the government leads to increased capital deepening?
Consider the premier coffee industry, assuming Starbucks and Peet’s Coffee are the only two firms in the market. Both firms are contemplating the decision to advertise or not (for simplicity, assume the firms only decide whether or not to advertise, ..
Large-scale bankruptcies and corporate frauds resulted in the Sarbanes-Oxley (SOX) Act. Which provision of SOX do you think will have the most profound effect on improving the quality of financial reporting and why?
Suppose that the demand for loanable funds for car loans in the Milwaukee area is $11 million per month at an interest rate of 10 percent per year, $12 million at an interest rate of 9 percent per year, $13 million at an interest rate of 8 percent pe..
We suggested above that an annually increasing renewal fee would be an efficient means of setting optimal patent life. Similarly, suppose that owners who wanted to restrict future use of their property had to pay a fee for each year that the restrict..
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