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Analyze the positive versus normative arguments in the following case. What statements of positive economics are used to support requiring air bags? What normative reasoning is used?
Suppose that due to whatever reason, reserve demand changes and you forecast the reserve demand to now be Rd = 270 - 30 iff. In order to keep the federal funds rate at target, what must the open market desk do? Be specific and show this developmen..
Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the following Compute the price elasticity of demand fo..
A best-selling horror book, Duma Key by Stephen King, was sold in hardback for $28 when it was first released. One year later, the publisher issued a soft-cover edition for $9.99. What accounts for the difference in price?
What was the percentage change in Nominal GDP for the most recent quarter compared to the previous quarter? What was the percentage change in Real GDP for the two quarters?
If the U.S. interest rate also remains constant, what is the new equilibrium $/£ exchange rate?
If the countries implement a uniform abatement standard, find the resulting values of TAC and MAC for each nation. Based on these values, is there an economic incentive for the two nations to participate in an emissions trading program? Explain.
Solve these equations for the maximum profit that the amusement park will attain when it charges different prices in the two markets and when it charges a single price for the combined market.
You are a manager of a firm with a following demand and cost functions in a perfectly competitive market. The price in your market is $35. Your total cost curve is: TC = 10 + 2Q + 0.5Q^2
What do you think the advisors replied? Why would they suggest increasing prices? Give all possible reasons
Use the central bank balance sheet to show how a balance-of-payments deficit affects the stock of high-powered money under fixed exchange rates. Show, too, how sterilization operations are reflected in the central bank's balance sheet.
Why are process structure and inertia considered problematic for innovation? How do these reveal gaps in the current practice? How can these gaps best be reconciled? Support your reasoning
Q= -3 + 8.5L - 2L^2 Q is toys per hour, L is workers employed per hour. Charges $20 per toy. Workers paid $10 hour. Firm has $50 fixed costs per hour. What is marginal product labor (MPL) What is marginal revenue product
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