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Describe how the budget constraint of a household in a two-period model is affected by each of the following changes. In each case, do you think that the household is better off or worse off, or is the answer ambigous? If ambigous, what does the answer depend on?
a. Period 1 income is lower.
b. The interest rate is higher.
c. Period 2 income is lower, and the interest rate is lower.
An industry has a supply curve MC (or P) $/unit = 10Q0.9. Demand follows P $/unit = 100 – Q1.1. Total external social cost (pollution) (in $ total) = 20Q1.2.
Create a presentation for the Board which examines the current state of the U.S. economy. Use the Library to find out the up-to-date information needed.
Country X and Country Y have the same level of output per worker. They also have the same values for the rate of depreciation, &, and the measure of productivity, A. In country X output per worker is growing, whereas in Country Y it is falling.
Suppose that the economy is currently at potential output. Also suppose tht you are an economic policy maker and that a you have been asked to rank if possible, your most preferred to least preferred type of shock: positive demand shock
Economists typically view free and mutually advantageous exchanges as a good thing - in the words of economists, they are "Pareto Improving." However, we may find in the literature on the "morality of market exchange".
After Iraq invaded Kuwait, gasoline prices increase dramatically--up to 50 percent. There were many effectrs of the increased price of gasoline.
Explain the effectiveness of the exchange rate regime being used in terms of achieving macroeconomics objectively in South Africa and discuss any four macroeconomics objectives which can be used to judge the performance of the economy.
The Xerxes Firm is composed of a marketing division and a production division. The marketing division packages and distributes a plastic product made by the production division.
Explain how would you estimate additional dollar cost of adding sales people? How is the expected net revenue generated by adding.
Explain why is the marginal cost of inputs more important than the average cost of inputs.
Illustrate what happens in the market for apartments when the government institutes a price ceiling that is lower than the market price. What could be some actions taken by renters and landlords when dealing with a price ceiling.
Jonathan accepted the offer and, eager to please her, spent lavishly in preparing for the evening. His purchases included a new blazer, new shoes, and expensive floral arrangement, and champagne. At the appointed time, Jonathan arrived at Rosalie'..
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