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Suppose that, when the average price of shoes increases by 5%, the quantity supplied of shoes increases by 8%.
What is the price elasticity of supply?
Is the supply of shoes elastic or inelastic?
Suppose that in an hour Chip can gather 8 pounds of fruit or 4 pounds of nuts. In an hour, Monk can gather 9 pounds of fruit or 3 pounds of nuts. Who should specialize in gathering nuts? Monk or Chip? both? or neither?
You believe that there is an equally likely chance that this information will either double expected chances of finding a well, or inform you for certain that the area is not commercial.
Assume that velocity of money is 5, nominal GDP is $1,350,000 and cost level is 3. Estimate all possible unknowns in XYZ's economy, if its federal reserve buys $9,000.00 in government bonds.
Suppose that Third National Bank has reserves of $20,000 and checkable deposits of $200,000. The reserve ratio is 10 percent. The bank sells $15,000 in securities to the Federal Reserve Bank in its district, receiving a $15,000 increase in reserves i..
Your sister is thinking about starting a Web-based business selling specialty tea to upper middle class Americans who are working outside the home for compensation. She is unsure if she also wants to open up a physical store in her current home State..
The interest rate generally considered to be the best indicator of day-to-day money market conditions and the one most directly monitored/targeted by the Fed is:
Consider the relationship between the Mexican peso (MXN) and the Canadian dollar (CAD). Let the exchange rate be defined as Mexican pesos per Canadian dollar. For each of the following cases, illustrate the effects on the FX market and state how the ..
Consider a country that produces shirts and autos. Shirts are produced with sewing machines (specific factor) and labor while autos are produced using robots (specific factor) and labor. Show how going to international trade affects the budget constr..
Why a change in the way government might makes transfers to the poor change the poverty rate even if there is no change in the amount of money transferred?
In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run increase in investment? Check all that apply.
Compare Australia with any other advanced economy and discuss their GDP last 2 to 5 years and factors affecting their GDP
Under the cost minimization rule, when will a firm employ only human labor? Why does the cost minimization rule suggest that it is unlikely a firm actually would replace human labor entirely with robotic inputs?
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