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Suppose a consumer’s preferences over goods 1 and 2 are represented by the utility function u(x, y) = (x+ y)^3. Draw an indifference curve for this consumer and indicate its slope.
Which is a tax on profits generated from mining of iron ore and coal.
A cappuccino vending machine is designed to dispense an average of μ oz per cup. If the ounces per fill are normally distributed, with a standard deviation of 0.4 oz, what value should μ be set at so 6 oz cups will overflow only 2% of the time?
For each of the following scenarios, please decide whether there will be an increase, decrease, or no change in aggregate demand. The United States government decides to increase the federal tax rate by 4% for all earners.
The Mariner Company, a calendar year corporation, issued $1,000,000 of 5% bonds at a price generating a 4% yield. The bonds were dated January 1, 2006 and were issued that day. Compute the selling price of ONLY the bonds. What is the TOTAL amount of ..
If you have been offered $137,000 for a job in Los Angeles and $117,000 for a similar job in Dallas, which job gives you the higher purchasing power of the bundle of goods in the price index.
Discuss how changes in household disposable income, housing and stock wealth, and debt-generated movements along and shifts in the U.S. saving function. Explain these effects, assuming other things were equal.
Identify a particular industry (non-government) that meets the criteria for Pure Competition or Monopoly. Explain clearly why you think the industry is in Pure Competition or is a Monopoly and evaluate it from perspectives of efficiency and equity. I..
According to Global Insight, a Massachusetts economics consultancy, what will happen if oil prices remain in the range of $65 to $70 per barrel for a couple of more months?
Calculate the original market equilibrium price and quantity in absence of the price support policy.
For each set of individual demand functions, calculate the market demand function and draw both the individuals' and market demand on 1 graph.
In your opinion, have these measures been effective or ineffective in addressing the major concern or concerns of the business cycle?
Justin has won $500,000 tax free in a lottery that he is going to invest. He has narrowed down his search to three funds that each have different stated rates. How much will he accumulate in 20 years for each of the three investment alternatives?
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