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Three policies used to restrict trade are: Tariffs, Quotas, and regulatory trade restrictions. Discuss pros and cons of each. If the government has to decide on one which one it will?
Suppose the market for cigarettes is characterized by the following information: Suppose the government imposes a sales tax of $2 per unit. Calculate the Dead-WeightLoss due to the sales tax.
Draw an arbitrary budget constraint for a person, assuming that he or she receives no government subsidies. Then draw in the budget constraint that arises from the above housing subsidy proposal.
If a 20% decrease in th price of long distancephone calls leads to a 35% rise in the quantity of calls demanded, you may conclude that the demand for phone calls is.
assume an economy lasts for 2 periods. in period 1 only 1 agent is born this agent lives for 2 periods. in period 2 two
Explain how shortages/surpluses are eliminated in a free market system. You can use graphs and specific examples in your analysis. Graphs don’t count towards the word limit. Explain the difference between scarcity and shortage.
In its effort to reduce the time value of money, the Federal Reserve System began aggressively increasing the supply of money through Quantitative Easing. What is true and what is false about the above statement? Explain
Explain how incomplete information can cause market failure. Give at least one example of this type of market failure and explain how government intervention has been used to correct the problem. How effective has this form of intervention been? Use ..
You need both equations and clearly labeled graphs (separate graphs for each question) to answer the following questions. Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. How much will thi..
How to define the relevant market to conduct the merger analysis? Explain briefly what is the Hypothetical Monopolist Test. You should discuss what the market definition is and how to include market participants of a relevant market. Explain what are..
During recession years,
Mercantilism is a bankrupt theory that has no place in the modern world. Discuss. Unions in developed nations often oppose imports from low-wage countries and advocate trade barriers to protect jobs from what they often characterize as "unfair" impor..
Illustrate what is the relationship between the Phillips curve, cumulative demand also cumulative provide.
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