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The only change which happened between the previous and the current year is that while in the previous year all of the 100 million worth of imports were used for consumption, now all imports are directed exclusively to investment. Therefore this will affect the national account of the current year by:
(a) A decrease in consumption by a 100 million and an increase in investment by 100 million; (b) A decrease in consumption by 100 million times the multiplier and an equivalent increase in investment; (c) A decrease in consumption by 100 million times the multiplier and an increase in investment by 100 million; (d) No change at all.
With reference to the theories of Baumol and Schumpeter, and the activities of one or more real world entrepreneurs during the last decade, explain how entrepreneurship can be either productive or unproductive (/destructive)
What is the fixed cost of running this business for one year? What is the marginal cost of selling one set of earrings? Does the marginal cost change depending on quantity sold? If so, how? If Mel’s goal is to maximize economic profit, how many bags ..
Which of the following is FALSE about intraindustry trade? Economies of scale allow firms to enjoy lower average costs. It creates gains from trade. It is due to comparative advantage. d. It may involve heightened competition and lower prices for con..
In early 1998, S3 was a small microchip-design firm with a big problem. The company knew that Intel’s patent wall would eventually stall its high-performance graphic-microchip business. S3 hatched a plan to fix the problem. What is the implication fo..
An established firm is considering expanding its capacity to take advantage of a recent rapid growth in demand. It can do so in two ways. It can purchase fungible, general-purpose assets that can be resold close to their original value, if their use ..
In an advertisement for a professional employment organization it was stated: “Outsourcing can be a cost-effective alternative to the expense and administrative burden of a traditional employer-employee relationship.” Evaluate the costs and benefits ..
If the required reserve ratio ia 10 percent, up to illustrate what amount could checking account deposits in the banking system as a whole drop.
Would the worker be better or if, instead of the health insurance, she was given a £100 per week pay increase which would be taxed at 20%.
Assume the market for used cars is set up as in the table below. There are two types of cars: lemons and peaches. Peaches are more reliable than lemons and thus have a higher value to both buyers and sellers. Sellers know the quality of their car, bu..
state whether each of the following events will result in a movement along the demand curve for McDonald's big Mac hamburgers or whether it will cause the curve to shift. If the demand curve shifts, indicate whether it will shift to the left or th..
Gomez runs a small pottery firm. He hires one helper at $12000 per year,pays annual rent $5000 for his shop, and spends $20000 per year on materials. Calculate accounting cost, economic cost, accounting profit, economic profit for Gomez pottery firm,..
There seems to be some evidence supporting the idea of a political business cycle. That is, the economy tends to experience particularly fast growth just prior to elections and slower growth or recessions some time after elections. Use the AD/AS mode..
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