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Q1. In recent years the value of the dollar had declined relative to the euro. What does that mean for European businesses exporting to the US?
Q2. Suppose that with 400 patients per year, the SAFC, SATC and SMC of operating a physician clinic are $10, $35, and $30 per patient, respectively. Furthermore, suppose the physician decides to increase the annual patient load by one more patient. Using short-run cost theory, explain the impact of this additional patient on the SAVC and SATC. Do they increase or decrease? Why?
George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John grew 200 bunches of bananas.
Why as a result of rise in exchange rate, the amount of imports fall but not as much as it does when the supply is perfectly elastic.
Consider a product market for a normal good. Suppose consumers' income increases. Explain what will happen to labor demand for firms in that market.
Assume no change in current productivity or current labor supply in either country. What is happening to financial flows.
The election of a new Congress causes consumer confidence to soar as expectations of future economic growth are solid.
In 2012, Balnur taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2013, she quit teaching, stopped renting out her basement, and began to use it as the office for her new Web site design business.
Calculate real GDP in each year, and the percentage increase in real GDP from year 1 to year 2 using year 1 as the base year. Next, do the same calculations using the chain-weighting method.
Suppose the MPC is an economy is 0.9. The APC is initially 0.95 and disposable income is $4 billion.
Explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity.
What do you imagine about the interest on payday loans is too high or just right.
Russian farmers, again, have a poor crop. Their government has announced that they will not ban exports. Discuss the impact on domestic and world prices, consumers and producers the effects of the Russian government's decision.
A farmer determined a natural gas preserve on his property.
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