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Use the following information to answer the questions below:
Manufacturing : Sales = 100 Payment to labor = 60 Payment to capital = 40
Agriculture : Sales = 100 Payment to labor = 50 Payment to capital = 50
Holding the price of manufacturing constant, suppose the increase in the price ofagriculture is 10% and the increase in the wage is 5%.
a. Determine the impact of the increase in the price of agriculture on the rental onland and the rental on capital.
b. Explain what happens to the real rental on land and the real rental on capital.
Explain what is the maximum amount of new loans that this bank can make. Show in column 1 how the bank's balance sheet will appear after the bank has lent this additional amount.
1. How does this FDA regulation protect consumers? 2. Why did the company voluntarily change its product name? 3. What effect did this regulation have on the company and on consumers?
If demand is estimated to be Qd = 240 - 6P, the marginal revenue function is
Different products have different elasticities. Heart medication, for example, is inelastic, and corn is elastic.
Compare and contrast the benefits-received principle of taxation to the ability-to-pay principle of taxation. Should sales and excise taxes be eliminated? Explain. Should the U.S. corporate profits tax be eliminated? Explain.
A country produces only one good. It produced 5,000 units of the good during Year 1 and 6,000 units of the good in Year 2. The price of each unit of the good in Year 1 was $280 and it was $320 in Year 2. Suppose Year 1 is taken as the base year for t..
Less-developed Countries (LCDs) are caught in a vicious circle of poverty. For output to increase, they must build up capital. To build up capital, they must save and consume less that what they are producing. However, because they ate poor, they hav..
Illustrate the total price of production (including the cost due to environmental damage) at the unregulated equilibrium quantity of 400.
Consider the types of non-tariff trade barriers and determine which has the most detrimental effect on the U.S. economy from the standpoint of the domestic consumer. Explain your rationale and support it with specific examples.
If GDP is increasing by 3% every year Explain how long will it take GDP to double. Given the same conditions above, Explain how long will it take Every Capita GDP to double if the population grows at 2%.
Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor force..
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