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On November 30, 1992, the student newspaper of the University of California at Berkeley illustrated a map identifying “high-crime” areas in Berkeley (see the figure attached). The 11 gray areas suffering more than 200 personal thefts and 75 burglaries last year. The newspaper recommended students living in those areas to keep valuables out-of-sight in the home. Please evaluate the validity and reliability of this news article's conclusion. Do you think the analysis and recommendation of this newspaper are logically acceptable? If so (or not), why?
Suppose that legalizing the use of marjuana would decrease its price by 93%. If the price elasticity of demand for marjuana is -2.00, what would be the percentage increase in the quantity of marijuana demanded from legalizing marijuana? _______ perce..
Suppose your retirement account has a balance today of $25000 and you are 20 years old. If you are invested in a diversified portfolio of stocks, you might hope that the historical return of about 6% continues into the future. Plot your retirement ac..
In recent years, both the United States and Greece have experienced increases in government debt and a significant economic downturn. In what ways were the two situations similar? In what ways were they different? Why did the two nations have differe..
If there is only one provider of electricity in a city, then that market is likely to fail due to:
It is difficult to compare the size of a nation’s economy to the size of a multinational corporation (MNC), as it is a bit like comparing apples to oranges. However, by almost any measure, whether comparing GDP or revenues, Conversely, what positive..
Classical economists struggled with the "Water-Diamond Paradox" which seeks an explanation for why water (which is very useful) has a low price, whereas diamonds (which are not particularly important to life) have a high price.
Why are people very interested in the economics of cancer care? how does its cost affect the economic aspects of the society (forecast using macroeconomic tools for analysis like opportunity cost, inflation rate, GDP..)
You are the manager of a monopoly and your demand and cost functions are given by P = 300 – 3Q and C(Q) = 1,500 + 2Q2, respectively. Furthermore, MR = 300 – 6Q and MC = 4Q. What price-quantity combination maximizes your firm’s profits?
Think about the last time you took a series of tests in a short period of time(high school or college). How did you decide how much time to spend studying for each subject? How might the study of economics help you make that allocation decision in th..
In the short-short run a firm
If the two firms each maximise profits independently, explain how much output would each firm produce. Explain how much quasi-rents would each factory earn.
At the end of 2012 the prestigious Rolex watch manufacturer had in inventory of watches worth $725 dollars. In 2013, Rolex produced $333 worth of watches and sold $260. What was the change in inventories in 2013? (hint: careful with the signs, rememb..
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