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Explain what the quote, “Too many cooks spoil the pot” has to do with the law of diminishing marginal returns. In the context of a restaurant operation, what are the variable and fixed costs?
New safety regulations increase manufacturers’ costs of producing insulation. What happens in the market for insulation as a result?
One of the elements of risk is uncertainty. Which one of the following best describes the type of uncertainty that risk involves? Risk can be classified as pure or speculative. Which one of the following is the best example of a speculative risk? Whi..
what will happen to the value of the dollar? Use the demand-supply model of the dollar to explain. sales of luxury cars will decrease.
Explain why a nation that imposes tariffs on imported goods may find its welfare improving should the tariff result in a favorable shift in the terms of trade.
Japanese GDP in 2010 was 480 trillion yen (U.S. GDP, again, was $14.5 trillion). The exchange rate in 2010 was 87.8 yen per dollar. Contrary to China and India, however, Japan had higher prices than the United States: the price level in Japan (conver..
Discuss any problems associated with using majority voting to determine the optimal level of a public good.
Assume a machine which has a useful life of only one year costs $2000. Assume, also, that net of such operating costs as power, taxes and so forth, additional revenue from output of this machine is expected to be $2300. What is rate of return on ..
If David's only illness this year results in an appendectomy, explain how many days will he choose to stay in the hospital.
Explain what is meant by a zero-sum game, and why it was central to Mercantilist thinking. Then, explain how Smith's idea of absolute advantage altered the nature of the "game."
How might advertising make markets less competitive? How might it make markets more competitive? Give the arguments for and against brand names.
Derive, from first principles, the equilibrium level of income. Derive the Keynesian expenditure multiplier. If T = tY, derive the equilibrium level of income.
BUS499(2011A) Final Exam: - Critically argue whether GDP is a good measure of economic well-being. You are required bring examples and academic references to support your answer.
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