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1. True or False: In the two goods consumer demand setting, an increase in one of the prices of a given level can have the same effect on the budget constraint as a given (maybe different) increase in income. ( give the explanation)
2. True or False: A consumer who can borrow and lend at a constant interest rate always prefers a choice of consumption bundles with a higher present value to one with a lower present value. (give the explanation)
3. Ture or False: Assuming fixed input prices, an increase in the price of the output will result in an increase in the profits of the firm. (Give the explanation)
Assume that being sustitutes for one another, corn and soybean require the same raw material such as land, will farmers use their soybean farms to produce more or less corn and in econmic.
Identify at least one important entrepreneur that you would consider an "entrepreneurial legend" and state why you consider the person to be (or have been) exemplary. You must also identify at least one economic decision made by this entrepreneur tha..
Is there a relationship between GDP and the business cycle. If so, explicitate relationship exists and how might a business manager use this information to increase their profits.
It is now, January 1, 2012, and you are considering the purchase of an outstanding bond that was issued on January 1, 2010. It has a 9.5% annual coupon and had a 30-year original maturity. What is the yield to maturity? What is the yield to call?
The vertical long run AS curve compatible with classical economics implies that AD only determines the price level
discuss Colgate-Palmolive's revenue, gross profit margin, operating profit margin, and strategies of the firm. Explain how industry consalidation has impacted the company and make projections about the long-term prospects for the company.
Consider an economy with its production possibilities represented by the function Y = A √ K √ L where Y represents total output (i.e GDP), K is capital, L is labor, and A is total factor productivity (TFP). This economy devotes a share of 30% of its ..
Discuss how the two cases in this chapter illustrate the major theme of this text: changes in the macro environment affect individual firms and industries.
Government wants to change its spending in order to avoid a recession. If crowding-out effect is always half as strong as multiplier effect and if MPC equals 0.9, by Explain how much does government purchases have to change.
q1. most restaurant customers tip according to a percentage rule between 15 and 25 percent of the bill. diners who have
He is fouled attempting a three-point shot and is awarded three free throws. Assuming each free throw is independent, what is the probability that he makes at least two of the free throws?
Find the equilibrium interest rate. Now suppose that G rises to 1,250. Compute private saving, public saving, and national saving. d. Find the new equilibrium interest rate.
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