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Explain the difference between fixed production technology and variable technology. Should the government set a goal of reducing the marginal social cost of pollution to zero in industries with fixed-production technology? Should they do so in industries with variable technology?
Explain how does the chosen forecast effect operational and planning issues in the home building industry. Defend your opinion in your paper.
The 2009 World Development Report provides the following information for Colombia and Thailand. Explain carefully what each of the entries in the four columns of this table measures. Do these measures capture important dimensions of poverty?
Assume that the home country experiences technological growth in the X sector such that α increases to 12. Describe the impact on the free trade price, the pattern of trade and gains from trade.
Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change? Does your answer depend on marginal propensity to consume.
Derive LM curve through one of the standard methods used in Macroeconomics. Be sure to label all axis and curves on your graph. Describe in writing to what your derivation brings equilibrium and how it accomplishes this.
Suppose you are the manager of the only company worldwide that specializes in exporting fish products to Japan. Your firm competes against a handful of Japanese firms that enjoy a significant 1st mover advantage.
Suppose a firm that is deciding whether to operate plants only in United States or also in either Mexico or Canada or both. Congress is currently discussing an overseas investment in new capital tax credit for U.S. firms that operate plants outside t..
Illustrate and explain the interaction of households, businesses, government and global markets in the circular flow of economic activity.
Illustrate what is the own price elasticity for ATM fees charged to non-customers.
Expalin how can inflation derail the economy from its growth path.
Illustrate what is the adjustment mechanism under a flexible exchange rate regime. Illustrate and explain which curve(s) will shift during the adjustment.
Consider a farm in the former Soviet Union. Try to describe how dicisions on the number of chickens to be raised, and the amount of each feed to use in raising them, were made under the old communist regime.
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