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Why would a country impose a quota instead of a tariff to restrict imports? and what is an optimal tariff? Give an equation for it. Why don’t countries use it more?
If the Fed didn't change the money supply, what would happen to the interest rate and if the Fed wanted to keep the interest rate constant following this money demand shock, how would it change the money supply?
The market equilibrium price for coffee beans in Ecuador is $2.75/pound, a price at which growers are unable to make a profit. Due to the lack of profits, many growers have stopped production and the output of coffee beans has fallen from 400 tons..
When manufacturer decrease price for goods and services, it increase customer’s surplus and everyone standard of living. Therefore, it behooves government to impose below market value ceiling on customers goods,
Imagine the opera has a capacity of 3000 seats and that all costs are fixed. If they can discriminate between the two groups, what is optimal price to charge to each group and how many tickets will each group buy?
Expalin why is private property, and the protection of property rights, so critical to the sucess of the market system.
For each hour of work, the employer deducts $1 and sends the money to the city government. The initial wage (Before the tax) is $10, and total employment is 20,000 hours per day. Use a graph to show the effect of the tax on the equilibrium wage an..
Elucidate which project should be accepted if the required rate of return for the projects
If the U.S. economy is operating near full employment and the exhange rate increases(the dollar appreciates),
Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change Does your answer depend on the marginal propensity to consume
The prices of outstanding bonds change whenever the going rate of interest changes. In general, short term interest rages are more volatile than long term interest rates.
a. If Blutarsky only cares about the total amount of alcohol in his basket, what is his marginal rate of substitution of bottles of vodka for six? packs of beer? b. Write out a utility function to represent these preferences.
Illustrate what is the short-run equilibrium real GDP and price level. Does Japan have an inflationary gap or a recessionary gap and what is its magnitude.
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