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Suppose market demand and supply are given by Qd = 100-2P and Qs =5+3P. If a price ceiling of $15 is imposed, what will be the resulting full economic price?
Florida Citrus Inc. (FCI) produces and sells a highly popular sports drink in the North American market. For many years, it has sold in the Asian market through a Tokyo-based importer. The contract with the importer is up for renewal, and FCI decides..
Draw a supply and demand graph for both the short run and long run money markets and explain the impact of an increase in the money supply on each market.
Can you think of other common (not necessarily universal but widespread) characteristics of less developed countries not mentioned in the text? See if you can list four or five and briefly justify them.
A perfectly competitive firm has the cost curves drawn in the following diagram. If the firm's output sells for $16 per unit, what is the firm's profit-maximizing output? Why?
Three men claim to be the fastest gun in the West. To see who is right, they agree to meet at a desolate location in a desert. On a circular, cobblestoned area that is roughly 50 yards in diameter, each stands at the perimeter such that each man is e..
Explain why monopolistically competitive firms frequently prefer nonprice competition to price competition.
Define what we mean by money and how it is used in the day to day functioning of the U.S. economy. Be sure to include the major components that make up what is defined as money and which of these components is used most widely to identify what money ..
Explain why: Government expenditure and investment has remained fairly constant as a fraction of GDP since 1950, even as transfers have risen. Explain why: Most of state government revenue comes from the income tax, and most Federal government income..
Assume that the government increases its spending by $100 million to stimulate demand. In the long run, the effect of this spending is to
Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No new working c..
Consider a person who can work up to 80 hours each week at a pre-tax wage of $20 per hour but faces a constant 20% payroll tax. Under these conditions, the worker maximizes her utility by choosing to work 50 hours each week. On a single graph, draw t..
Explain three major potential advantages and three major potential disadvantages of foreign direct investment, from a developing country perspective. In your own view, do you think that multinational corporations (MNCs) in less developed countries sh..
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