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The price of soybeans is $1.50 per bushel and the price of corn is $0.60 per bushel. Show the benefits to Fran of specialization. What should she specialize in?
How would you use the concept of comparative advantage to argue for reducing restrictions on trade between countries?
What are the expected marginal benefits of crossing? The expected marginal costs? How would the following conditions change your benefit-cost equation?
What are the three basic economic questions? How are decisions made differently in a market economy than in planned economies?
Unlike Titanic, Citizen Kane was not a box office success. Do you think Hollywood will make more movies like Titanic or like Citizen Kane? Why?
Why could higher wages and better job opportunities lead to a more capital-intensive way of performing household chores? Explain.
Show what happened between April 1917 and November 1918. Show what happened once the war ended.
How can tax laws and rules governing property affect entrepreneurs' willingness to start new businesses or improve existing enterprises?
Draw two production possibilities curves, one for Economy A and one for Economy B.
Using the law of demand, what do you think is true of land prices in New York City relative to those in rural Minnesota?
What would be the effect on the demand for ice cream? What would be the effect on the demand for frozen yogurt?
What would have to happen to the market price of wheat for Felix to have the incentive to produce from the second field?
How does a technological advance that increases the efficiency of shoe production affect the production possibilities curve between shoes and pizza?
Using a production possibilities curve between schools and space stations, explain under what conditions the politician would be able to keep his promise.
Would it help you make decision on national air quality standards? Describe two positive statements that might useful in determining the air quality standards.
In the 1940s, Dr. Melvin Page conducted a national campaign to stop people other than infants from drinking milk. How would you evaluate Dr. Page's claim?
Who are the main beneficiaries of tax-exempt industrial development bonds (which enable communities to borrow funds to re-lend to firm constructing new plant.).
Assume that Ricardian equivalence holds. What happens to national savings when the government increases the deficit? What happens to private savings?
Show the effect of an increased budget deficit. Show the effect of an increased budget deficit which originates as a result of increased public investment.
How might you design a balanced budget amendment that would not force the government to cut back expenditures or raise taxes in an economic downturn?
Should expenditures on health care for children be considered an investment. What other expenditures might legitimately be classified as investment?
Should the revenues received be counted as reducing the deficit? How would the transaction be treated under a capital budget?
Assuming that the government raises taxes on wage income, what is the impact on GDP in the short run? What is the impact on the deficit and on investment?
Assume the government is considering whether to reduce the deficit by increasing capital gains. Describe how different groups are affected by the alternatives.
If resources are scare and if people are always wanting more than the economy can provide how is it possible that we would have unemployment?