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Nineteenth-century British economist Thomas Malthus reasoned that because the amount of land is fixed, as population grows and more labor is applied to land, the productivity of labor in food production would decline, leading to widespread famine. This predication is what led economics to be called "dismal science". Malthus's prediction failed to come to pass as advances in technology, such as the Green Revolution, greatly increased labor productivity in food production. Do such technological advances contradict the law of diminishing marginal returns?
Explain how do changes in interest rates, inflation, productivity and income affect exchange rates.
Draw indifference curves to represent the following types of consumer preferences-I like peanut butter, but neither like nor dislike jelly.
Jermaine has a health insurance policy that has a deductible of $1,000, a $10 copayment on doctor visits, and coinsurance of 10% on all expenses other than those for which there are copayments.
Your company is considering expanding overseas. It is particulary interested in developing markets, and narrowed its choice down to two countries, A and B.
Assume the government imposes a tax of $2.00 per unit to reduce widget consumption and raise government revenues. What will the equilibrium quantity be?
Explain how does the chosen forecast effect operational and planning issues in the home building industry. Defend your opinion in your paper.
Suppose a firm must pay an annual tax, which is a fixed sum, independent of whether it produces any output-How does this tax affect the firm's fixed, marginal, and average costs?
A monopolist faces demand curve p = 11-Q , where Q is measured in thousands of units. Compute the firm's degree of monopoly power using the Lerner index?
Explain how a voluntary exchange results in a win/win situation to both parties.
All semester we have been tracking the economy to discern where it currently resides along the business cycle and where it seems to be headed over the next 6-9 months.
Pam, having recently graduated from college, is looking to work for 2 years before she enters graduate school. She has received 2 job offers with the following salary structures:
Proide that the economy grows is allowed to grow through the banking system and the creation of money through lending.
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