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If I spent all my money ($450,000) on a new house I could buy a house with 4500 square feet. I settle for a 1500 square foot house. (Each square foot costs the same.) The day after I close the deal a nearby nuclear power plant is condemned and the value of homes in the entire area is cut in half. Show graphically what happens to my utility level and explain why the result is plausible. Put numbers on your graph showing the wealth and housing possibilities after the housing prices fall.
Suppose that he can earn 5% on this long-term account, that he will make 40 deposits, and that he will make the first withdrawal one year after the last deposit. How big can Francisco's withdrawals be?
How many major wireless phone handset manufacturers are there?
LED light bulbs use only 20 to 25 percent of the energy used by traditional incandescent bulbs. Even if all consumers replace their old bulbs by the LED bulbs, do we expect that the arrival of LED light bulbs will decrease energy consumption for ligh..
q1. during the recession of 2008 2009 the detroit urban area had very considerable unemployment which is the highest in
Can we say that the plant in country b is more efficient than the plant in country A? Discuss in terms of both technology and economic efficiency.
Explain your intuition as to why premia rise between April and September. Which of options above has lowest time value.
Suppose that the participation variable, voucher, is completely randomized in the sense that it is independent of both observed and unobserved factors that can affect the test score.
Can you tell whether this firm is in a competitive industry. If so, can you tell whether the industry is in a long-run equilibrium.
Show that the consumer is better off with a lump-sum tax rather than a proportional tax on wage income given that either tax yields the same revenue for the government. You must use a diagram to show this. (Hint: the consumption bundle the consumer c..
Describe the considerations that ABC Airline must explore as it considers entering into an international contractual arrangement with XYZ, Inc. which is an airline part manufacturer located in Europe.
Suppose that the Canadian economy, on a fixed exchange rate, has a real growth rate of 2% and is in equilibrium with an inflation rate of 10% and risk premium of 1%. Suppose that changes in the US cause its real rate of interest to increase from 3% t..
What are the benefits and drawbacks of having a health program that varies by state versus having one that is uniform across the country? Do you find that the positives of state flexibility outweigh the negative or vice versa?
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