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Real consumption expenditures in the economy is $600, investment expenditure is $100, government expenditures of goods and services is $150, exports is $60, imports is $80, labor force is 40, unemployment rate is 3 percent, money multiplier is 8.3, real interest rate is 3.5 percent. Calculate real GDP. [Hint: some of the data provided above are not needed to answer the question.]
Economically, when is it best for a firm to outsource or contract-out some part of its production? Provide an example of a business task or operation that it would make sense to outsource. Provide an example of a government task that it would be eco..
In 1998, Coca-Cola held a contest inviting high-school students to devise promotional ideas for the company. A prize of $500 would go to the school with the best PR strategy. What would happen if Mike sued for violation of his First Amendment rights?
Explain how low must a quota be in effect to have an impact. Using a demand-and-supply diagram, illustrate and explain the net welfare loss from imposing such a quota.
Mars Inc manufacturers M&Ms the milk chocolate comes in a variety of colors: blue brown green orange red and yellow the overall proportions for the colors are 0.24 blue, 0.13 brown, 0.20 green, 0.16 orange, 0.13 red and 0.14 yellow in a sampling stud..
Millie mows her own yard to save money. Her neighbour Paul, however, hires a lawn service to mow his yard. One day Millie is looking out the window and sees Paul's lawn service drive up. Surprisingly, they begin to mow her yard, not Paul's yard. Disc..
Consider the consumption-savings problem in a two-period model without government. Suppose the lifetime utility function is given by U(c,c')=In(c)+bIn(c'), where 0
Assume that velocity and aggregate output are constant. If the money supply increases from $1.10 trillion to $1.18 trillion:
Consider the following possible schemes for taxing a monopoly: Explain how each of these taxes would affect the monopolist's profit-maximizing output choice. Would the tax increase or decrease the deadweight loss from monopoly?
In general, correcting income distribution data for taxes and transfer payments results in:
What is protectionism? Explain what trade protectionism is, example: health and safety regulation. What are the argument favor of trade protectionism and what are some opposite or drawback of this.
AB acted as a well-managed business that takes actions necessary to remain competitive in a competitive market.
Consider how each of the following events is likely to affect real GDP. Do you think the change in real GDP reflects a similar change in economic well-being?
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