ECONOMICS 110/111 ECONOMICS 110/111 ECONOMICS 110/111 Suppose the inverse demand and supply curves are given by (where Qs and Qd are quantities P is…October 5, 2020
Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 2, a budget deficit of $20 billion inOctober 5, 2020
Question: Are the following 3 scenarios true or false? Please explain the reason for your answer.
- As a price-taker, assuming there are no externalities, the market equilibrium is also the efficient outcome.
- Suppose a new fertilizer is developed which reduces the cost of producing grapes. This new fertilizer will result in excess supply of wine in the market.
- Economists as a discipline deals only with logical deduction. Economists should never make claims which embody moral- or value-judgments.
Please note, this question is a re-submission after the first 24 hour from my first submission. I hope I will get an answer as soon as possible because the assignment is due in less than 15 hours, please.
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