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Consider a diagram containing isocost curves for the production of a given level of a final commodity in the household production model. Assume that purchased inputs are represented on the vertical axis while the time input is measured on the horizontal axis. A decrease in the wage rate will cause the isocost curves to:
A. become steeper.
B. become flatter.
C. remain unchanged.
D. become steeper or flatter depending on the magnitude of the wage increase.
Explain the concepts of scarcity also choice also elucidate how they function in economic system.
What assumptions do we make in the long run regarding the velocity of circulation and the relationship between real GDP and potential GDP? (MV=PY)
Does the concept of technological efficiency permit us to determine at which point on an isoquant a firm should operate.
Suppose that the labor market is competitive and there are a total of 1,000 black workers and 1,000 white workers (who each supply their labor in elastically). Both black and white workers are equally productive, having constant individual dollar pro..
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A coupon bond has a face value of $1,000 and maturity 5 years. The required rate of return for the bond is 5%. The bond is sold at a price of $1,000 now. Calculate the coupon rate of the bond. Year by year, calculate the current yield and the capital..
Consider a consumer who spends all of her income on two goods. Prove that it is impossible for both goods to be inferior for this individual. (Suppose the assertion is not true. Write algebraically what this means, and derive a contradiction by using..
What is the expected value and standard deviation of the safest investment strategy you can make by this means. What is the highest expected value you can achieve.
Most projects completed using traditional project management are done in a weak matrix organization. Most projects completed in an agile project management framework use a strong matrix or pure project environment. Why is this so?
Consider a Cournot duopoly with the inverse demand p = 130 - Q. Both firms have constant marginal and average cost MC = AC = 10. Find the Cournot-Nash equilibrium output and profit of each firm. Calculate the con-sumer surplus and DWL.
explain why the actual increase in M-1 will be smaller than that indicated by the over smplified multiplier.
Elucidate the multiplier concept as it applies in this case also what are the qualifications and limitations of the m.
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