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Please research the ultimatum game and its game theory application to decision-making and market coordination. How might the ultimatum game help solve the assurance game problem introduced by Hanley et al. 1997 (see page 17).
What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output level is being produced?
What is the mechanism by which the central bank announcing an inflation target translates into an actual inflation rate and how would your answer to q1 change if households had rational expectations
Then tell the reader how these Determinants (or factors) affect the consumer responsiveness to price changes. Remember we discussed these significantly in our Discussion Board regarding the price of gasoline?
Suppose that normal workers increase a rm's revenue by $6, while smart workers increase revenue by $A, where A > 6. Firms cannot tell smart workers from normal workers ex ante, but can observe a worker's educational level.
by installing some elaborate inspection equipment on its assembly line the robot corp. can avoid hiring an extra worker
Outdoor Sports Corporation, with its main office in Iowa, is considering opening a branch office in Los Angeles. Under normal economic conditions, which have a 45 percent chance of occurring,
Elucidate how these economic concepts can be used to address the firm's problems and opportunities.
1. the largest component of spending in the circular flow model isa. investmentb. consumptionc. net
Suppose that society decided to reduce consumption and increase investment. How would this change affect economic growth? What groups would benefit from this change? What groups might be hurt? Justify your answer.
The Bureau of Labor Statistics reported that in December 2002, total labor force was 142,542,000 of a possible 214,967,000 working age adults.
Explain how does the democratic political system lead politicians to emphasize points outside the production possibility curve.
Economic and political stability are important factors to be considered when finalizing an international investment. Illustrate what are some specific risks of investing in politically and economically unstable countries. Cite real life examples.
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