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In an open economy, the condition for equilibrium in the goods market is different from the condition for a balanced trade account. Explain using words or equations (or both if you wish). Draw a diagram that illustrates a situation where the goods market is in equilibrium while the economy is experiencing a trade deficit
Consider a 2 player stag hunt in which a Stag is worth 6 jollies to each player and a Hare is worth 1 jolly to any player catching one. What is the mixed strategy Nash equilibrium in this game?
Suppose that Seth's income increases from $400 to $500 per week, causing Seth to increase his purchases of movies from 3 to 4. The income elasticity of movies is:
Assuming Mr. Delaney decides to keep the body shop, and the consultant reports that it is feasible to raise prices, should Mr. Delaney do so. If he does, illustrate what general guide can you suggest as to how much price should be increased.
The government is allowing for emergency procedures to aid suffering chocolate addicts.
What services do you predict Bangalore India exports and what services do you predict it imports.
q1. monopoly. please respond to the following.imagine monopolizing a service or product of your choice. discuss explain
Suppose that there is no growth in real GDP and inflation is equal to -2% per year. (Negative inflation is the same as deflation.) Measured in ducats, illustrate what will GDP be equal to next year.
Patents allow a company to have a monopoly for a period of time. Monopolies result in lower quantity supplied and higher prices to consumers. Do you think companies should be allowed to obtain a patent on a product or not?
q.youre the manager of global opportunities for a u.s. manufacturer who is considering in europe expanding sales. as
In the short run, a firm cannot vary its capital, K = 2, but can vary its labor, L. It produces output q. Explain why the firm will or will not experience diminishing marginal returns to labor in the short run if its production function is
Which of the following two examples illustrates adverse selection and which illustrates an incentive problem? Explain your answer. In each case, give one method that the restaurant might use to reduce the problem.
limit popular influence without destroying popular sovereignty. Illustrate why the framers wanted to achieve each of these objectives and how the Constitution does so.
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