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Suppose w=$100. There are two commodities, electricity and food. Each unit of food costs $1.
The first 20 kwh of electricity cost $1 per kwh but the price of each incremental unit of electricity is $1.50 per kwh.
Write the consumer's budget set formally and draw it.
illustrate what would need to reduce the supply of money if Canada was an open economy with a flexible exchange rate.
During an economic recession, discuss how management's or a union's bargaining power might be affected. Give an appropriate business example to illustrate what you mean
Describe the 2011 NFL lockout . (including defining what a “lockout” is, and how that differs from other labor disputes). Define who was involved, and what their economic functions were (Hint: what kind of legal entity is the NFLPA? What kind of econ..
For each of the following scenarios, please decide whether there will be an increase, decrease, or no change in aggregate demand. The United States government decides to increase the federal tax rate by 4% for all earners.
A major issue that has arisen after the 2008 Financial Crisis is the debate over “Too Big to Fail” financial institutions. a. What are “Too Big to Fail” financial institutions? b. What are the major concerns with the size of these corporations? c. Wh..
Suppose PlayStations and PlayStation games are complementary goods. Now there is a technological advance in the production of PlayStations. Use a supply/demand diagram of PlayStations market and a supply/demand diagram of PlayStation games market to ..
The city of Bugnussle is considering exceeding the runways of its municipal Airport so that commercial jets can use the facility. The land necessary for the runway extension is currently farmland which can be purchased for $350,000. Construction cost..
The merger of Comcast and Time Warner is creating a cable television network with control of 75% of the U.S. market. Much of what we know about monopoly suppliers also applies to concentration in consumption (monopsony). After reading Comcast Eyes Ti..
Explain why calculating GDP using income approach or expenditure approach yield the same for any economy. Use the idea of circular flow to explain how expenditure approach and income approach is shown in the circular flow diagram. What are the two fl..
Explain the theory that education acts as a signaling device' How does this contrast to the theory of education as an investment in human capital? Explain the difference between inferior goods and normal goods' As a developing economy experiences inc..
You now know everything you need to know to be an informed critic of the Affordable Care Act. Based on all that you have learned, how does the Act measure up to our three goals of 1) increasing quality of care, 2) increasing access to care and 3) kee..
Equilibrium GDP is $5000 while full employment is $6000. What kind of gap is this? What would the Keynesians say the government should do? The correct economic policy would cause Aggregate (Demand or Supply) to (rise or fall)?
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