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Perfect competition is analytically elegant.
a. What percentage of an economy's total production do you think is provided by perfectly competitive firms?
b. Based on your answer to a, why does the text spend so much time on perfect competition? (Institutionalist)
The government spends 80, financed by borrowing, to provide public services. If autonomous consumption plus investment is 210 and the marginal propensity to consume MPC = 0.8, what are the equilibrium real GDP values before and after the governmen..
Is the equilibrium level of income higher or lower than it was in problem 1( a )? Calculate the new equilibrium level, Y , to verify this.
Evaluate the role of public opinion, interest groups, and political parties in the political system.
Explain why an inverted (downward-sloping) yield curve may indicate that a recession is coming.
A friend convinces you that she has a great idea for a business, and the two of you incorporate. You supply her with funds and let her make all of the executive decisions. Under the agreement you hold 30% of the firms stock and your friend holds 7..
Draw and label an aggregate supply diagram that illustrates the effect of the change in each determinant
Use the firm s short-run cost curves to evaluate this approach. Draw the firm s short-run supply curve and compare it to the supply curve of a firm that maximizes its profit.
The Rapid Engine Corporation is a multinational producer os small gasoline and Diesel motors. Rapid hs estimated the given cost experience for a new 3.5hp engine over a sample of 122 observations.
Why do economists think that discrimination in the labor market is an unlikely explanation for the persistent inequality in earnings between women and men and among the races?
a.) Draw and label a second budget line that shows what happens when the price of the CS rises to $10. b.) Draw and label a third budget line that shows what happens when the price of a CD rises to $10 and Parvez's income rises to $240
Real Disposable Income Planned Real Consumption 0 3,000 2,000 4,400 4,000 5,800 6,000 7,200 8,000 8,600 10,000 10,000 12,000 11,400 14,000 12,800 Refer to Table 12.1. The table gives the combinations of income and consumption.
Are earnings subject to ethnic discrimination? Using your EAEF data set, regress LGEARN on S, ASVABC, MALE, ETHHISP and ETHBLACK .Interpret the regression results and perform t tests on the coefficients.
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