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Which of the following goods are likely to be classified as normal goods or services? Inferior? Defend your answer. Beans Tuxedos Used cars Used clothing Computers Books reviewed in The New York Times Macaroni and cheese Calculators Cigarettes Caviar Legal services
You are employed as an economic consultant to the regional planning office of a large metropolitan area, and your task is to estimate the demand for hospital services in the area. Use this information to project the impact of the following changes on..
Mortgage-backed securities are: If the real rate of return is 2 percent, and the inflation rate is 2 percent, then the nominal interest rate must be:
who are well-known to be boring, stuffy types; what could be a better way to reinforce one's credentials as a radical, innovative thinker than to skewer their most beloved doctrine.
A monopsonist’s demand for labor can be written as VMPE = 40 – 0.004ED. Labor is supplied to the firm according to w = 5 + 0.01ES. Thus, the firm’s marginal cost of hiring workers when it hires off of this supply schedule is MCE = 5 + 0.02ES. (a) How..
Patrick consumes only two goods: Celtic Music concerts and Celtic Springs Water. Patrick earns $100 per month at his part-time job in the library. The price of Celtic concerts is $10. The price of Celtic Springs Water is $2. Draw Patrick's budget con..
A city that is attempting to attract a professional football team is planning to build a new stadium costing $500 million. Annual upkeep is expected to amount to $1,000,000 per year. what will be its capitalized cost at an interest rate of 10% per ye..
The theoretical model of the inter temporal budget constraint for the U.S. economy as a whole suggests that the most common pattern seems to be that:
Explain WHY profits are maximized or losses minimized at the level of output where marginal revenue equals marginal cost.
The firm requires at least 10 units of input A or 2 units of input B in order to produce 1 unit of output Y. Describe this technology by mathematical function. Draw the production isoquant that corresponds to 40 units of output Y.
What is the best case scenario between Marginal Revenue and Total Revenue? Do we want Total Revenue to be maximized and Marginal Revenue to be equal to zero or do we want Total Revenue to be rising and Marginal Revenue to be positive?
At the same meeting of the open market committee where it announced Quantitative Easing 3, the Fed chose to also announce that its currently low Fed funds rate of 0 to .25% would be maintained until at least the middle of 2015. Why would changing inv..
A company said it plans to spend $20.7 million in expanding its fiber-optic Internet and television network. It will make the company more competitive than other TV providers and will generate net annual revenue of $4.35 million per year. If the comp..
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