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"GDP" Please respond to the following:
Explain why a movement from a point inside a production possibilities frontier to the production possibilities frontier can be described as a free lunch and a movement along a production possibilities frontier is described as a tradeoff.
What effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram in your notes to determine the expected effects on the equilibrium price level (P) and level of real output (Q). For each of the economi..
Firms apply marginal analysis to maximize the following production goal. The market economy would produce too? _______ healthcare because the marginal social benefit from healthcare? _______ the marginal benefit perceived by its consumers.
Think about the merchandise sold at Office Depot, Staples, and Office Max, and list 3 to 4 types of merchandise that fall into extended problem solving, limited problem solving, and habitual decision making for college students.
What is the hedonic theory of wage differentials? Discuss the characteristics of a normal- profit isoprofit curve. Combine isoprofit curves with worker indifference curves to explain how two workers with identical stocks of human capital might be pai..
Explain the concepts of impatience and internal discount rate (of an individual). (Hint: the example of a depletable resource may be useful for handling this task.) To determine the intertemporal consumption decision of an individual the concept of d..
Suppose that you believe that recent strong employment data (~ 180,000 jobs added in November!) together with the prospect of a tax cut for corporations and wealthy families means that the Fed will start to increase interest rates sooner and faster t..
If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock p..
Discuss the approach of utility maximization considering consumer behavior. Do you know the examples that confirm this theoretical point of view? Emphasizing how knowledge of the theory an contribute to the better understanding of life situations peo..
If the government uses a tax to get producers to internalize their externality, what is the net price received by producers.
Explain how many units of labour will Valentines hire. What wage per unit of labour will Valentines pay.
When we say utility is the determinant of exchange value, we mean that
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