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As a tourist looking to have a vacation in Europe, you are very interested in Switzerland, but you are concerned about the high prices. What other European countries would you consider?
Suppose many factories that once made goods in the United States moved to Mexico. In order to correct the balance of payments in the United States, net exports (NX) must:
Lady Gaga has come to you for advice. She has balances at three department stores as shown in the table below. The monthly interest rates vary between stores as shown. She wishes to pay off all three accounts by the end of three months. She will allo..
Two identical countries, Country A and Country B, can each be described by a Keynesian-cross model. The MPC is 0.8 in each country. Country A decides to increase spending by $1 billion, while Country B decides to cut taxes by $1 billion. In which cou..
A consumer has preferences u(x) = 2x 1 2 1 + x2. The price of good 1 is p1 > 0 and the price of good 2 is 1. You may restrict your attention to interior solutions throughout. Explain whether these preferences are i) monotonic, ii) quasilinear, iii) e..
In a study of vehicle ownership, it has been found that 31% of U.S. households do not own a vehicle, with 48% owning 1 vehicle, and the remaining owning 2 or more vehicles. When testing (at the 10% level of significance) whether the vehicle-ownership..
Which of the following statements is TRUE? A risk-averse person prefers gamble B to gamble A. A risk-averse person prefers gamble A to gamble B. A risk-neutral person prefers gamble A to gamble B. A risk-neutral person prefers gamble B to gamble A.
Suppose that droughts in the Southeast and floods in the Midwest substantially reduce food production in the United States. Use the aggregate demand–aggregate supply model to illustrate graphically the impact in the short run and the long run of this..
Joy's frozen yogurt shops have enjoyed rapid growth in northeastern states in recent years. From the analysis of joy's various outlets, it was found to the Demand curve.
You are the manager of a large crude-oil refinery. As part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year.
What would it take for a point beyond the PPF to ultimately become attainable? Name an important assumption associated with the PPF. Why are models such as the PPF which require broad assumptions used in economics?
Assume consumer equilibrium (budget curve and indifference curves). Draw 3 separate scenarios: (1) the price of good x decreases; (2) the price of good y increases; and (3) the budget (income increases). In each scenario, explain the effect on the gr..
Firms can have: Accounting profits and economic losses, Accounting profits and economic profits, Accounting losses and economic losses, Accounting losses and economic profits.
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