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Sandy has an income of $300 per month and qualifies for food stamps. The food stamp program awards people $100 per month, but that money can only go towards the purchase of food. Assume food costs $1 per unit. Draw Sandy’s budget constraint with the food stamp program in effect. Label all axes, intercepts, slopes, and “kink points” (x- and y-values of where the slope changes), if possible. Assume “all other goods” is the y-axis good.
An economic model and A good economic model
Explain the following concepts: demand schedule, demand curve, supply schedule, supply curve. Then, list the determinants of demand and explain how a change in each determinant affects the demand curve. Do the same for the supply.
If a firm has market power but cannot prevent its customers from reselling the product to other customers, the firm will:
for a child i living in a particular a school district let voucher be a dummy variable equal to one if a child is
Eastman Kodak filed for a bankruptcy in January 2012. Using our analytical framework of nine areas of interest introduced in class explain the main causes of the company's misfortunes.
Elucidate the multiplier concept as it applies in this case. What are the qualifications and limitations of the multiplier model.
Suppose the short-run Phillips Curve shifts from SRPC1 to SRPC3. At a 5% inflation rate, will the unemployment rate increase or decrease? By how much?
What was the impact on the supply and demand of labor on one sector of the labor market? Explain the factors that affected labor demand and labor supply in the chosen historical example.
When the exchange rate falls by more in the short run than it does in the long run when the money supply increases, it is called.
Borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate and profit from the interest-rate differential.
A man went to his bank and borrowed $750. He agreed to repay the sum at the end of three years, together with the interest at 12% per year, compounded annually. How much will he owe the bank at the end of three years?
what compounded annual increase in cost is this? how does the increase in the cost of natural gas compare to a 3% annual rate of inflation during the same period of time?
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