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What are the four phases of the business cycle?
How long do business cycles last?
Why does the business cycle affect output and employment in capital goods industries and consumer durable goods industries more severely than in industries producing consumer nondurables?
Why is it difficult to distinguish between frictional, structural, and cyclical unemployment?
Why is unemployment an economic problem?
What are the consequences of a negative GDP gap?
What are the noneconomic effects of unemployment?
Use axiom of transitivity to prove that indifference curves cannot touch each other. Use axiom of non-satiation to prove that indifference curves will always be downward sloping and utility functions will always be upward sloping. Use the axiom of di..
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 130 - 0.25P, and the marginal cost of production is $160. Determine the optimal number of units to put i..
Describe when you have experienced diminishing marginal utility. Also discuss opportunity costs you have had to pay in order to attend school
Suppose the price of a pack of cigarettes is $30 and the cigarette consumption is 100,000 packs a day. The government now introduces a consumption tax of $10 on cigarettes. Cigarette consumption decreases to 80,000 packs a day. Assume that the demand..
What are the major institutional changes that take place with economic development? Are these institutional changes causes or mere correlations of growth? Or is growth a cause of institutional change?
What is the difference between contractionary and expansionary monetary policy? What is the difference between contractionary and expansionary fiscal policy? How does each policy affect the AD in the economy? What are the benefits and major problems ..
Consider that two drugs are available for the management of diabetic patients. The first, drug, the current practice, costs $12,000 over 15 years. The new drug costs $7,500 over 15 years. The outcome measure, quality adjusted life years (QALY) with t..
There are 20,000 hours of labor for country A. 5 hours of labor are required to produce 1 unit of S, while 4 hours are required to produce 1 unit of T. Find the shape and dimensions of country A's PPF.
To maximize profit, should the firm lower its price, increase its price, or leave the price unchanged? How would you change your response if marginal revenue is $1.50? Explain your responses.
She says the tax will generate $100,000 tax revenues per month. What assumption is she making.
What is an absolute and comparative advantage? Give an example where you have an absolute, but not a comparative advantage with someone else.
What does the economy look like when the economy is in an unemployment gap? What type of unemployment rate is it compared to the Natural Rate of unemployment? What about inflation?
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