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Max has the utility function U(x, y) = x(y + 1). The price of x is $2 and the price of y is $1. Max’s Income is $11. How much x does Max demand? How much y? If his income doubles and prices stay unchanged, will Max’s demand for both goods double?
Distinguish between the two types but knows the probabilities of each type. What would be the result in this market for loans.
Is it necessary to register a trademark? What are the benefits to registering a trademark? What distinguishes a trademark from another symbol or group of words?
Explain how much would the combined production of pineapples increase for the two islands due to trade. How much would the combined production of pearls increase.
Draw, side by side, a diagram of the market for money and the aggregate supply/ aggregate demand to illustrate how inflation is created. Initiate the process in the AS-AD diagram with negative supply shock that the central bank decides to "accommodat..
There is one scenario where the unemployment rate would probably be underestimated due to the discouraged worker effect. One where the rate would probably be underestimated due to underemployment.
Under the responsibility scheme proposed by the Hong Kong government, households will be charged for solid waste disposal. Is this charge justifiable from an economics point of view? Explain your answer with a diagram. Is it fair to charge all househ..
structural unemployment of 2 percent, seasonal unemployment of 0.5 percent and cyclical unemployment of 2 percent, illustrate what is natural rate of unemployment.
Do you think the industry environment is significantly dissimilar today.
To explore the implications of this view, suppose that an economy consumes all wage income and saves all capital income. Show that if the factors of production earn their marginal product, this economy reaches the Golden Rule level of capital.
Suppose that the initial loan of $20,000 and interest rate 1.2% per month. Interest due is paid at end of each month. $10,000 of the original unpaid balance is to be repaid at the end of month two and three only. How much total interest would have be..
According to the political business cycle theory, if the Fed wanted to see a President re-elected, prior to the election it might
In 2000, the SEC proposed new regulations that would limit consulting work by accounting firms. This proposal was not passed by Congress. Do you think the legislators were trying to act in the public interest when they failed to pass this proposa..
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