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Suppose the Government decides to subsidize exercise by $2 for every mile (Q) consumers run at a health club that charges by the mile. The current demand for running is Q=12-2p. The supply of miles available by the track owners is S=2p. What is the initial equilibrium price and quantity?
When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.
Compare the use of open market operations, discounting, and changes in reserve requirements to control money supply on the following criteria: flexibility, reversibility, effectiveness, and speed of implementation.
Economic opportunities arise from nations which develop industries in which they have a comparative advantage.
if you owe money to a bank. Will you gain or lose from an unanticipated decrease in inflation and how could inflation make people turn to exchange by barter?
Assume Congress decides that oil companies are making too much profit and decides to tax oil companies for each gallon of gasoline produced. This would Answer shift the average fixed cost curve down. shift the marginal cost curve up.
Explain why is private property and the protection of property rights, so crucial to the success of the market system.
Choose five innovations associated with the Industrial Revolution and five innovations from the Technological Revolution. For each innovation, identify the effects it had on individuals, societies, businesses, and politics.
Explain why RELATIVE prices of two goods, both produced in each of two countries, will differ prior to any trade taking place ("autarky"). why profit-seeking will cause each country to specialize - wholly or partially - in producing one of the goo..
Suppose that two people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and raise chickens. If Michelle devotes all her resources to growing potatoes
The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers.
Assume that the plant managers base their decisions on a five-year capital budgeting cycle (i.e., time is t = 0, 1, 2, ..., 5, where t = 0 is now), and that changes in regulations mean that the company has to buy the scrubber within a 5-year grade..
What do you think the increase in productivity is likely to move the economy closer to full-employment or farther away.
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