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Assume government imposed a minimum wage above what otherwise would be equilibrium wage rate for the segment of labor market. Use a supply and demand framework of analysis, what do you expect to happen to employment in this segment of the labor market? [Suppose that inflation and economic growth are both zero.]
If deficit spending -crowds out some private investment, could future generations become worse off? If external financing eliminates crowding out, are future generations thereby protected?
A manufacture is planning outsourcing their product to China, where the costs to produce the product are considerably cheaper. You have been brought in as a consultant to discuss economic considerations of such a move.
Explain why the authors cite ethnically segmented markets as a factor that holds back private sector development and building entrepreneurial capacity.
Elucidate why the price elasticity of demand differ along a demand curve, even if the demand curve is linear.
Given the following information, compute the real interest rate for years 2, 3, and 4. Suppose that each CPI number tells us the piece level at the end of each year.
Explain how could you use the concepts of marginal cost and marginal revenue to maximize profit? What information do you need to determine this.
Suppose last year's real GDP was $10,000 billion, this year's nominal GDP is $13,800 billion, and GDP-deflator for this year is 110. Determine the growth rate of real GDP?
Edgemont Company had revenues of $230,000 and expenses, including income taxes, of $190,000. On December 31, 2005 Edgemont had assets of $350,000,
Illustrate what are the THREE tools the FED has at its disposal to manipulate or change the Money Supply and interest rates.
Illustrate what are automatic stabilizers. What are some examples. What are your thoughts about the limits of fiscal policy.
Then list one good reason to allow tire imports and one good reason to restrict tire imports. Give a short explanation for each reason.
Elucidate two reasons a single minimum salary might distort the labor market for teenage workers more than it would the market for adult workers.
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