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For at least 25 years following 1981, the Chinese government followed a policy that kept its currency weak and the U.S. dollar strong. Explain how this policy hurts Chinese consumers. Why does the Chinese government continue to support a strong dollar, despite harm to its consumers?
Decide whether each of following statements is true or false. Then explain why your answer is correct, based on Slutsky decomposition into income and substitution effect.
Suppose the daily demand function for pizza in Berkeley is Q = 1,525 – 5P. The variable cost of making Q pizzas per day is C(Q) = 3Q + 0.01Q2 , there is a $100 fixed cost (which is avoidable in the long run), and the marginal cost is MC = 3 + 0.02Q.
Which of the following statements is consistent with what happened during the Great Recession? Identify whether the following statement is more likely to come from a classical economist or a Keynesian economist. “The recent decline in consumer confid..
Sheridon Corporation is investigating automating a process by purchasing a new machine for $519,000 that would have a 6 year useful life and no salvage value. By automating the process, the company would save $135,000 per year in cash operating costs..
Suppose you are currently earning $15 an hour. If the inflation rate over the current year is 10 percent and your firm provides a cost-of-living raise based on the raise based on the rate of inflation, what would you expect to earn after your raise? ..
In planning for your retirement, you would like to withdraw $50,000 per year for 20 years. The first withdrawal will occur 20 years from today. What amount must you invest today if your return is 10% per year? What amount must you invest today if you..
With reference to the theories of Baumol and Schumpeter, and the activities of one or more real world entrepreneurs during the last decade, explain how entrepreneurship can be either productive or unproductive (/destructive)
Suppose that work hours in New Zombie are 200 in year 1 and productivity is $16 per hour worked. What is New Zombie’s real GDP? $. If work hours increase to 210 in year 2 and productivity rises to $18 per hour, what is New Zombie’s rate of economic g..
Jimmy deposits $4,000 now, $2,500 3 years from now, and $5,000 6 years from now. Interest is 5% for the first 3 years and 7% for the last 3 years. How much money will be in the fund at the end of 6 years? What is the present worth of the fund? What i..
In the microeconomics in context model, the sectors of economic activity include:
A country has only two inputs K and L and produces two goods X & Y. It is endowed with 30 units of L and 15 units of K. Industry X is endowed with 25 units of L and 5 units of K and industry Y has the rest of L and K. This is an inefficient allocatio..
Define the following: functional organizations, product organization, geographic organization, matrix organization also network organization.
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