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Why is equilibrium a desirable condition of the market? What factors move the market away from equilibrium? Explain why in U.S. agricultural markets, quantity supplied almost always exceeds quantity demanded.
Explain how banks and individuals can use "covered interest arbitrage" to protect themselves when they make international financial investments.
Suppose a production function is given by f(K;L) = KL 2 What combination of labour and capital minimizes the cost of producing any given output?
The public tends to view trade deficits with alarm while macoreconomics claims that trade deficits can actually be usefull for the economy. Discuss the macroeconomists position on trade defilicts
Optimal consumption. The following Table describes the demand for tickets to the opera, during the two=-week season.
Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.
Exchange and markets, Demand supply and market equilibrium
Illustrate what real rate of return will you earn if the inflation rate.
What is the effect on investment? What is the multiplier effect?
All semester we have been tracking the economy to discern where it currently resides along the business cycle and where it seems to be headed over the next 6-9 months.
Compute the velocity for the two countries in 1985. Explain why do you think the velocity was so much higher in Brazil.
Elucidate the factors which contribute to the elasticity of goods. Descriobe how these factors influence consumers to purchases goods or services.
Explain why do economists believe that the CPI overstates the rate of inflation
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