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1) You and your neighbor meet at the University Inn. Your neighbor suggests that the trouble is too much government spending in the economy. Outline how this may be correct, in terms of fiscal policy.
2) Your bartender, Joe, is very nosy. He gets so red faced upon hearing this that you are afraid he will burst. He notes that “big government is not really the problem” at all. Explain, graphically and verbally, how this may be correct.
3) A Wall Street Journal writer enters the argument and suggests that, in terms of financial stability and “the recent credit mess, there are lessons about government” that we ought to heed. Explain.
The purchasing power parity theory "predicts" that if the price of semiconductors in the United States is $3 and the price in Japan is 210 yen for a comparable semiconductor, the exchange rate would be
Suppose there are two inputs in the production function, labor (L) and capital (K), which can be combined to produce Y units of output according to the following production function: Y = 30K + 10L The firm wants to produce 600 units of output.
After a few years of monopoly, the family that owns the Coca-cola monopoly gets in a fight, and they split the company in two. Now there are two large Coca-cola retailers in your area, and each retailer must decide whether to charge a high or low pri..
Assume that this cost is set by an upstream wholesaler with monopoly pricing power.
If a second McDonald's franchise, Mac Junior, was to move into Obscure City. Elucidate what is the market price that would prevail at equilibrium in a Cournot oligopoly.
What is an innovation economy? How does it differ from a traditional manufacturing economy?
Sam is interested in buying two types of goods, x and y. He can either use all his income to buy 3 units of x and 9 units of y, or 9 units of x and 3 units of y. If he spends all his income on x, how many units can he buy?
The college has annual fixed costs of $10 million, also the variable cost for every additional student is $5,000.
Explain, in your own words, what a "store within a store" is. Provide 3 situations where this could work. Explain the logic behind your decisions.
For a course in international trade, our professor touched on the idea of immiserizering growth. He emphasized that immiserizing growth was a theoretical outcome from specialization of trade and did not provide the class with examples on the global m..
Assume the interest rate is 5.75 %. how much do you have to deposit each year make sure that 8,000 can be withdrawn for the 4 years?
Under what circumstances would a monopolistic firm be economically more efficient than a group of small, competitive firms? If there are such monopolies, what are the drawbacks and how could they be corrected?
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