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Vicki is shopping for books. She prefers Great Expectations to The Chosen and prefers The Chosen to Jurassic Park. She buys Great Expectations and Jurassic Park for a total of $30. Which of the following MUST be true?
a. Her PIBP for Jurassic Park is greater than $15.
b. Her PIBP for Great Expectations is greater than $15.
c. Her PIBP for Jurassic Park is less than $15 .
d. None of the above.
Why is the financial system of a country important for long-run economic growth? Why is it vital for economic growth that firms have access to adequate sources of funds? Explain. Why do businesses demand loanable funds? Explain what happens to the eq..
Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. It is important to have the right mix of policies and that al..
Suppose the government sets an effective price floor (that is, a price above equilibrium) in the market for oranges and agrees to buy all oranges that go unsold at that price. The oranges purchased by the government are discarded.
Illustrate what marketplace structure did you assume. Would your answers in b change if the marketplace for sewing machines were competitive.
Which of the following events may decrease market labor demand? Choose all that apply.
You are the manager of a firm which produces also markets generic type of soft drink in a competitive market.
Think of another good that you have purchased recently (or you could continue with the good you selected in TDA I). Be specific (e.g. is it breakfast cereal in general or Cheerios cereal specifically). If the price of this item increases, how would t..
As a small investor, can I invest either directly or indirectly - in mortgages? What kind of risks would I be undertaking if I did? Are there any other financial instruments that have similar risks? Given the current economic situation, would you inv..
What will happen to the equilibrium price and quantity of new cars if, simultaneously, the price of automobile insurance (a complement) increases and the price of steel decreases
When the Bell System was broken up, the old AT&T was split into a new AT&T in addition to seven regional telephone companies. The specific reason for forcing the breakup was to increase the degree of competition in the telephone industry. Do you thin..
What is the expected rate of depreciation in the Korean won relative to the Japanese yen
A perfectly competitive firm will operate and incur an economic loss in the short run if. A perfectly competitive firm's short-run supply curve is the same as its. f firms in a perfectly competitive industry are presently earning zero economic profit..
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