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Distribution of costs and benefits Suppose that the government decides to guarantee an above market price for a good by buying up any surplus at that above-market price. Using a conventional supply-demand diagram, illustrate the following gains and losses from such a price support:a. The loss of consumer surplusb. The gain of producer surplus in the short runc. The cost of running the government program(assuming no storage costs)d. What is the total cost of the program to consumers?e. Are the costs and benefits of the support program widespread or concentrated?
A change in reserve needs of depository institutions is the policy tool most frequently used through the Federal Reserve to influence economic activity
Suppose you are Chief Economist of the FCC. The Chairman has called you in to discuss a thorny issue. Two wireless broadcasters operate on adjacent frequencies.
At an annual compound interest of 10% per year, would you rather receive $10,000 per year for 5 years or receive $5,000 per year for 10 years What is your preference if you must pay these amounts rather than receive them
Provide high domestic interest rates, what is the economic outlook for these Asian countries in the next few years.
Elucidate why the price elasticity of demand differ along a demand curve, even if the demand curve is linear.
Think IS LM BP model of an open economy with sticky price levels in local currency, perfect asset substitutability, perfect capital mobility and static expectations.
What can you say about the relationship between marginal revenue and marginal cost for output rates below the profit-maximizing (or loss-minimizing) rate? For output rates above the profit- maximizing (or loss-minimizing) rate?
Illustrate what are the 2 policy options used to influence the economy
The number of repairs manufactured through a computer repair shop depends on the number of employees as follows:
Suppose there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn. For Nebraska the opportunity cost of prod..
Could you conclude this data shows the proportion of politically motivated expatriates has increased Use the 0.05 significance level.
Mable has balanced the cost against the benefit of bringing a lawsuit against Harvey. She has decided to sue him for monies owed to her as per a contract the two entered into. However, she would much rather settle her case at the pretrial hearing.
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