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Suppose an individual's marginal rate of substitution is three slices of pizza for one beer at the present bundle of beer and pizza she is consuming. If the price of beer is $1.00 and the price of a slice of pizza is $1.50, is the consumer maximizing her welfare?
Describe and graph (using AD/AS framework) an example in today's news of fine tuning economy. Assume the MPC in an economy is 0.8, the APC is 0.8 and disposable income is $9 billion. If disposable income increases to $14 billion, what is the new le..
In the class, we discussed the Paradox of Thrift argued by John Maynard Keynes. According to the argument, even if many household decide at the same time to increase their saving, the total saving will not increase in the long run, while it leads ..
Illustrate what should the Fed do in inflation continues to fall and eventually starts to become deflation.
Draw a graph describing the demand and supply curves before and after the tax. describe graphically the tax revenue and how it is shared between the consumers and suppliers (producers) of gasoline.
Suppose the French suddenly develop a strong taste for California wines. Answer the Following with words and a Diagram:
Illustrate graphically why someone paid an yearly salary might be likely to shirk if monitoring is incomplete at the firm.
Elucidate why does the Fed like to fight inflation in our economy and is inflation a concern right now given our current economic situation.
Assume the Chinese government abandons the peg and allows the yuan to float.What would be the effect on Chinese imports and exports.
Suppose you are asked to evaluate a policy that addresses urban smog problem in the Chicagoland area. This policy is one of the several ozone-reducing policy options evaluated using cost-benefit analysis.
In turn, what factors influence the level of investment what sort of government policies or programs are capable of stabilizing employment and dampening the business cycle How do these policies work
Elucidate how would this technological change affect the price elasticity of demand for natural gas
With regards to monopoly, is it possible for a monopolist to earn zero economic profit Is it possible for a monopoly to generate a loss How does average total cost figure into monopoly profits?
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