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Explain why the "kinked demand curve" model of oligopoly represents a game theory approach to oligopolistic behavior.
In particular, the number of workers is rising slowly, while the number of retirees is rising quickly. Concerned about the future of Social Security, some members of Congress propose a "freeze" on the program.
Examine the characteristics of perfect competition. Think about the economic forces that lie behind the social attitudes and changes that have taken place in the labor market.
An economy consists of two regions, the North and the South. The labor market is initially in an economy-wide equilibrium, with 1,000,000 people employed in the North at $25 per hour and 2,000,000 in the South at a wage of $15 per hour. Assuming t..
A firm can seek any combination of quality and price it chooses. Thus, it can go with a low quality-low price strategy or use one which combines high quality with a high price. Ideally, of course a high quality and a LOW price will be the most pow..
The marginal propensity to consume and the marginal income tax rate are 0.9 and 1/3, respectively. The budget deficit is observed to increase by 90. a. What change in investment would account for this b. What change in government spending would acc..
How do graph the demand & supply curves, equalibrium price & quanitity for the following:
What method is used to ration goods in a market economy? How does this rationing method influence the incentive of individuals to supply goods, services, and resources to others? How are grades rationed in your economics class?
Technological change eliminates thousands of jobs every year. Unless something is done to slow the growth of technology, ordinary workers will face a bleak future of low wages and high unemployment." Explain why you either agree or disagree with this..
Several years ago, the orange growers of Florida launched a marketing campaign in which the spokesperson, while holding a can of California almonds, told viewers: "One can a week. That's all we ask."
Consider another economy in which the unemployment rate over the next three years is 6%, 7%, and then 4%. According to Okun's Law, what are the levels of short run output (Y tilde) in this economy? Suppose short-run output over the next four years ..
Suppose there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn. For Nebraska the opportunity cost of prod..
What is the government budget balance? Does the government have a budget surplus, budget deficit, or balanced budget?
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