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Suppose you own a movie theater and most of your costs (the band, security, the land rental, etc.) are independent of how many people show up. What is likely to be the point elasticity of demand at the price you decide to charge?
Illustrate what are institutional arrangements. Why are they considered important fundamental determinants of economic growth and development.
Briefly discuss and illustrate the circumstances under which the minimum wage would (1) not lead to unemployement, amd (2) not cause a reduction in the total earnings of low-wage workers who are still employed.
Describe the provider's equilibrium salary and how many nursing units it will hire.
Determine the Groups Share of and the Income Split Point for Individual Income Taxes as of 2003 for the following group of income earners:
Suppose instead that the government wishes to impose a value tax of $0.25 on each dollar of the consumer's expenditure on good 1.Show the effect of imposing this tax in a graph containing before and after budget lines.
Assume that the federal reserve wishes to keep nominal interest rate at a target level of 5 percent. Draw a money supply and demand diagram in which the current equilibrium interest rate is 5%.
Illustrate what is included in determining any of the measures of money supply. what happens to the equilibrium price level and output rate.
Explain the difference between the Keynesian and monetarist views on how an increase in the money supply causes inflation and why is the shape of the aggregate supply curve important to the Keynesian-monetarist controversy?
What are commodity money, commodity backed money and fiat money? What are the positives and negatives of each type of money.
Discuss the feasibility of lower middle or low income countries resorting to fiscal stimulus to stave off recessions in their own economies. You can use one or more countries as examples.
Explain how can a domestic market be protected. If a country had protected domestic market, what would be the likely effect on its balance of trade.
Nominal GDP in a country was $8,759.9 billion in 2003 & $9,254.6 billion in 2004. The price index was 102.86 for 2003 & 104.37 for 2004.
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