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Q1. Suppose that two economies initially have the same level of real income and both suffer unanticipated declines in their sales of exports of $50 billion. Country "A" has higher tax rates and a higher level of government spending than economy "B". Otherwise, the two economies are similar in every respect. Which nations will suffer the maximum decline in services as a result of the decline in exports?
Q2. Use the two big questions of economics and the economic way of thinking to answer the following questions about the economic life of a homeless man.Does he face scarcity?Does he make choices?Can you understand his choices as being in his own best interest?Can either his own choices or the choices of others make him better off? If so, how?
What are the strength of the neoclassical models of labor supply and labor demand. What are the weakness of the neoclassical models of labor supply and labor demand.
Who has the comparative advantage in what product. Once they specialize, how much does output increase. What are the terms of trade if the United States trades 1 can of soda for 5 units of clothing.
The impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
Discuss the importance of a well-developed compensation plan in attracting as well as retaining good employees as well as how to keep those plans from "working too well."
What would be the new equilibrium in this economy if Investment increased by $12.
These 3 basic trade-offs include which goods or services are to be created, how to create them, also who gets them.
Elucidate the marginal revenue from the fourth worker
The alternative is to tie bonus pay to some absolute measure of performance. Discuss the merits as well as drawbacks of each approach.
What must she/he expect to happen to short term interest rates over the coming year.
Illustrate what cost as well as quantity will result once the patent expires and competition emerges in this market.
Bud has very limited store space and has decided to limit his product line to one brand of beer, choosing to forego the snack food lines that normally accompany his business.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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