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1. Think of a goods and services market for coffee. A wild fire destroys half of the coffee bean crop. Which curve is affected and in what direction? What will happen to equilibrium, price and quantity in that market?
2. Think of a financial capital market for a stock. News comes out that this company is going to lose money in the upcoming quarter. Which curve is affected and in what direction? What will happen to the equilibrium wage and quantity of labor?
3. Think of a labor market for automakers. A new process on the line makes it necessary for the firm to add a few more workers on each shift. Which curve is affected and in what direction? What will happen to the equilibrium, wage and quantity of labor?
4. Think of a labor market for skilled workers. LCC starts a program called “Get a skill, get a job” which promises that at the end of training, you’ll get a job or your money back. Which curve is affected and in what direction? What will happen to the equilibrium wage and quantity of labor?
Suppose a country's government is concerned about growing inequality of incomes and wants to undertake a program that will increase the total earnings of the unskilled. Extending employer payroll taxes to all earnings over $117,000 per year and incre..
The market for lemonade in a town consists of two lemonade stands (i.e., firms), 1 and 2. An agricultural economist estimates the following market demand for lemonade in this town: Q = 250 - P, where Q is the market quantity and P is the market price..
Suppose the Fed announced that they planned to keep short run interest rates low for a period of two years. This year, the 1 year USTS zero coupon bond interest rate is i = 0.0025 and next year the interest rate on a 1 year zero Coupon bond is expect..
Kalamazoo Competition-Free Concrete (KCC) is a local monopolist of ready-mix concrete. Its annual demand function is Qd= 24000-400P where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year. Suppos..
Exporting Nations often agree to voluntary export restraints in an attempt to employ more workers in the importing Nation to avoid more restrictive trade policies see increased Global Warfare Rd decrease
A 5 percent increase in the price of digital apps reduces the amount of tablet devices demanded by 3 percent. What is the cross price elasticity of demand? Are tablet devices and digital apps complements or substitutes?
Why do price gouging laws often fail to work?
List six major factors that distinguish financial management in firms operating entirely within a single country from those that operate in several different countries. What are some of the common barriers to entry for a firm entering a new country f..
A $200,000 bond having a bond rate of 7% payable annually is purchased for $188,000 and kept for 5 years, at which time it is sold. How much should it sell for in order to yield a 9% effective annual return on the investment?
Assume that a manufacturer faces a Cobb-Douglas production function, q= 40K^0.5L^0.5 where q is output per period, L is labor, K is capital
The rate of economic progress in a country seems to depend on the extent to which the country has a well-functioning market economy in which property rights are protected. Discuss the relationship between property rights, corruption, and economic pro..
When a Denver resident purchases a shirt imported from China, this represents a:
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