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The income elasticity of demand for your firms product is estimated to be 0.75. A recent report in The New Straits Time says that national income is expected to decline by 3 percent this year.
What would you do with your stock of inventories?
What do you expect to happen to your sales?
How would you answer parts a and b if you expected a 5% increase in income instead of a decrease?
Do you believe that business has any direct ethical duties to living beings other than humans? Do animals, plants, or ecosystems have rights What criteria have you used in answering such questions What is your own standard for determining what ob..
Illustrate what happens to the money supply, interest rates, and the economy in general if the Federal Reserve is a NET BUYER of government bonds.
suppose central bank observes directly aggregate demand shocks or fully anticipates them. formulate a monetary policy
Suppose a firm produces bicycles. Will the firm's accounting statement reflecte the opportunity cost of the bicycles ? Why or why not? What cost would an accounting statement revela? Should current decisions be based on accounting cost? Explain.
What is the likely effect of an exogenous decrease in the price of oil on the Canadian economy? Explain how the Bank of Canada would respond to such shock.
(i) the total estimated monthly mileage for the 24 lorries (ii) the average (mean) estimated monthly mileage per lorry
Explain how market structure affects market performance and conduct. Identify three types of government regulation that help to improve market performance and conduct and explain how each regulation achieves its objectives and the economic justifi..
Suppose the federal government needs to balance the budget, which means that when the government spending increases, taxes must increase equally. In this case, government spending multiplier is called the balanced-budget multiplier, defined as the..
Some people have suggested that forced population control is an efficient means of decreasing the Tragedy of Commons associated with our clean air and water resources.
Illustrtae what will equilibrium GDP equal if taxes decrease 200? Why are the results different.
Compute the point price elasticity of demand for bearing grease. Compute the optional price for bearing grease if marginal cost is $4.50 per unit.
In late 2010 economists were debating whether the U.S. economy was in a recession. GDP seemed to be rising, yet the unemployment rate was stuck at close to 10 percent. In thinking about the economic distress experienced during a recession which is th..
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