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A small open economy with a aborting exchange rate is in recession with balanced trade. If policymakers want to reach full employment while maintaining balanced trade, what combination of monetary and Oscar policy should they choose?
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -2, while group 2’s is -4. Your marginal cost of producing the product is $40. Determine your optim..
How might the firm deal with the problems that such a strategy poses?
Discuss why a corporation would want to enter a country with a high political risk and benefits that would need to be present to outweigh risk. Provide specific examples to support your response.
currently there is an incumbent monopoly in a market. a potential entrant may enter. the incumbent can spend x dollars
What is the price of an hour of leisure? An hour of nonmarket work? What does it mean to say that leisure is a normal good? Why doesn't the market supply curve for labor bend backward?
Discuss a change in demand resulted in a change in the market price. Provide an example of how a change in supply resulted in a change in the market price. How does the price mechanism work to keep markets in equilibrium?
Illustrate what is the difference between absolute advantage and comparative advantage. If a country has an absolute advantage in both goods.
Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the busi..
If the CPI was 110 last year and is 121 this year, what is this year’s rate of inflation? In contrast, suppose that the CPI was 110 last year and 108 this year. What is this year’s rate of inflation? What term do economics use to describe this second..
The current population of the United States is 318.9 million with 3% of the population is engaged in R&D at an eciency rate of 1/500 per million persons per year. If the growth rate in output per person is 3.0% per year what is the value of in the Co..
Suppose that velocity is constant at 10, but the nominal money supply increases from $1.1 to $1.21 trillion. Elucidate what must happen to nominal output.
For what rate of inflation, both the options are equally attractive ? Describe two different methods of "Depreciation" an equipment / plant may undergo (with numerical example)
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