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Why might a profitable motel shut down in the long run if the land on which it is located becomes extremly valuable due to surrounding economic development?
What are the pros and corns of a market economy in comparison with a command economy.
If the average person drinks two bottles of water per day or uses 5 gallons per day in getting that amount of water from the tap. what are the present worth values of drinking botled water or tap water per person for 1 year.
Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005. Year REAL GDP (2000 prices) population 1987 $6,435,000 million..
You have been hired to work with a resort owner in Northern Minnesota. This resort owner runs a very small operation catering to mostly people who like to fish.
Explain why may a government solution to a marketplace failure worsen the market failure.
There are several ways that mutual funds can generate returns for investors. Compare and evaluate these different types of income and evaluate their tax effect.
Suppose you are the manager of the only company worldwide that specializes in exporting fish products to Japan. Your firm competes against a handful of Japanese firms that enjoy a significant 1st mover advantage.
Does the structure of global economy permit poor nations to catch up with rich ones? Is the Solow model a useful framework for understanding whether poor nations tend to catch up with rich ones?
Smaller multiplier means that the change in government purchases of goods and services or taxes necessary to close an inflationary or recessionary gap is larger. Explain this apparent inconsistency?
Assume that the interest parity condition holds and that both the expected exchange rate and foreign interest rate are constant. Given this information, an increase in the domestic interest rate will cause:
Suppose Panama produces only two goods, bananas and hats. If Panama has a comparative advantage in bananas, a move toward free trade will, a. harm hat workers, benefit banana workers, but benefit the nation as a whole. b. harm hat workers, harm bana..
you estimate that the price elasticity of demand for clinic visits is -0.25. You anticipate that a major insurer will increase the copayment from $20 to $25. This insurer covers 40,000 of your patients, and those patients average 2.5 visits per ye..
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