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1. ?In which of the following situations is a budget surplus most likely to occur?
?When fiscal policy is contractionary and the economy is expanding
?When fiscal policy is expansionary and the economy is contracting
?When fiscal policy is expansionary
?When the economy is contracting
2. ?The government of Crossland wants to influence its exchange rate. It will do so by buying and selling:
?Commodities
?Transfers
?Goods and services from the current account
?Currencies in its official reserves
If they close, then they only have the fixed costs. On a graph, we would have to compare the price with the average variable cost. What decisions need to be taken into consideration to determine if the business should remain open or close down
Regional economic integration can be seen as an attempt to achieve additional gains from the free flow of trade and investment between countries beyond those attainable under international agreements, such as the WTO. What are the pros and cons of th..
what is the short run equilibrium level of output in this economy.
Determine the profit maximizing output and amount of profits for the firm. If the market demand increases to Q(d) = 57 - 4P, determine the new profit maximizing output and profits.
When an investment is sunk and durable, why is it a mistake to assess the investment only on the basis of economic profits in the first year? What is a better criterion? Why?
Assume that your household gets a machine that cost Lesley provides you with food. Illustrate what would that do to your labor supply.
Define the correlation between two random variables X and Y. What does the correlation coefficient measure?
The PC World article states that Intel needs to have their new class of fabrication plants (Fabs) produce at a specified volume. Show why this is the case using the concept of cost curves to describe firm behavior such as that found on page 206 of th..
Which of the following is true under monopoly?
Examine advantages and/or disadvantages of distributing market pesticide permits to each farm operating in eater shed equal to 40% of current levels of use of that pesticide, versus simply ordering each farm to reduce pesticide issues to 40% of cu..
The Consumer Product Safety Commission is reconsidering a rule it first proposed in 1997 that would require child-restraint caps on household products, including cosmetics. When the rule was first proposed, it was resisted by the cosmetic industry an..
If direct material and labor cost is not the major component in the cost structure, it is more appropriate to use activity based costing to allocate the overhead cost. By life cycle viewpoint, salvage value summarizes all the costs and revenues occur..
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