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For the typical consumer's total change in gasoline consumption due to the gasoline tax show graphically the amount of the change that is due to the substitution effect and the amount of the change that is due to the income effect. Explain these two effects. (Show income and substitution effects for gasoline only).
We have learnt that in a perfectly Competitive market, all cost savings from a technological advance are passed along to cnsumer in the form of lower prices
Compute the coefficient of price-elasticity of supply for the seven prices ranges given above and complete the table.
According to the Heckscher-Ohlin theorem, is Russia capital abundant or labor abundant? Briefly explain. What is the impact of opening trade on the real wage in Russia? Briefly explain.
Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.
Assume that Congress is considering imposing the 30% tariff on imported automobiles. Who would be the gainers and who would be the losers from such move?
President Obama pushed his massive fiscal stimulus package of $787 through the Congress and later passed by the House and Senate, whose centerpiece was spending most of this stimulus funds
Using the exchange rates and prices in the tables above:
What are the macro and micro problems? What systems are affected structural, psychosocial, technical, managerial, goals?
Graph the accompanying demand data, and then use the midpoint formula for E d to determine price elasticity of demand for each of the four possible $1 price changes.
What is the difference between the medium of exchange and the store of value? What is the difference between commodity money and fiat money?
This product, called Red Hat Linux, is a potential replacement for UNIX and other well-known operating systems. If you were in charge of pricing at Red Hat, what strategy would you pursue? Explain.
Compute the path of the economy, that is , calculate real GDP, the price level, the inflation rate and real money stock for each year until GDP I swithin 1% of the potential. (limit calculated values to 10 decimals points)
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