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Suppose that the government places a ceiling on the price of a medical drug below the equilibrium price.
Explain why there is a shortage of the medical drug at the new ceiling price.
Suppose that a black market for the medical drug arises with the pharmaceutical firms secretly selling the drug at higher prices. Describe and draw the black market for the medical drug, including the ceiling price, the black market supply and demand, and the black market feasible price.
what his students remembered fron introductory macroeconomics about the creation of money. He reported that few students were confident enough or remenbered enough to reply correctly to his question.
Decide to conduct a SWOT analysis to evaluate the value and risks. Provide a SWOT analysis and briefly discuss each factor.
Apply the IS/LM fr. amework to explain the following question. In the early 1980's to combat the recessionary forces, President Ron Reagan used expansionary fiscal policy by lowering (marginal) tax rates to combat the recession. Concurrently, Paul Vo..
What does Autor mean by "polarization of job opportunities?" Illustrate what is the primary cause of this polarization.
The intuitive criterion by Cho and Kreps is a refinement to minimise the set of perfect Bayesian equilibrium in signalling games. What would a simple and intuitive example to explain this criterion be?
Discuss two reasons that government should intervene in the operation of free markets and give two examples of real-world government policies or programs motivated by these reasons.
Pick a firm in the fashion/retail industry. In your opinion, how does the firm you selected acquire market power? What impact do barriers to entry have on the firm's market power?
When full employment is reached the aggregate supply curve will (as we move to the right along the curve):
If we assume only one factor (labor), we can demonstrate on the PPF the opportunity cost of producing less of one good and more of the other good by:
What should Honda and Toyota do to manage this short term average price increase.
An industry consists of three firms with sales of $310,000, $725,000, and $405,000. Calculate the Herfindahl-Hirschman index (HHI). Calculate the four-firm concentration ratio (C4).
What are the economic and political arguments for regional economic integration? Given these arguments, why don't we see more integration in the world economy?
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