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This is a possible essay question for a microeconomic exam. Let's first define what a tax is - an ad valorem tax is an indirect tax based on a percentage of the sales price of a good or service. We could ...
One good way to improve your essays is to use real world examples and data to backup your arguments. For example when explaining some of the advantages of a monopoly use examples from the real world. For ...
A buffer stock system is typically used in a market for a commodity, such as wheat, which may be vulnerable to large changes in supply. This could be due to weather for example, and it is not uncommon for...
Private costs are costs which are internal to the market function, and those affecting only the producer. Thus, private costs form the supply curve of the market, as they show the price at which the produ...
Aggregate demand (AD) is total spending on goods and services. The formula = AD = C (consumption) + I (investment) + G (government spending) + (X (exports) - M (imports))Interest ...
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