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What does John Keynes mean by this quote from his General Theory? "The ideas of economists and political philosophers, both when they are right and when they are wrong ar emore powerful than is commonly understood. Indeed, the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually slaves of some defunct economist... I am sure that the power of vested interests is vastly exaggerated compared with the encroachment od ideas. Not, indeed, immediately, but after a certain interval..." (Keynes, The General Theory, p.383-384)
Firm A produces cement sifters. The process includes the melting of metals and chemicals which give the sifters strength. In the production process, waste is produced and released into the river that runs alongside of the plant. ome states allow stud..
Suppose that you are interested in studying the effect parental involvement has on children’s grades. You plan to measure parental involvement by asking the students a few survey questions. If you estimate your model using OLS, do you believe that an..
Parkleigh presents an hourly salary also the employee discount. Kaufmann's offers only an hourly wage.
Illustrate the full income budget constraint on an individual who has T0 units of discretionary time, Y0 units of unearned income and a wage rate of W0. In the same diagram, illustrate the utility maximizing choice of leisure and goods/income. Indica..
Suppose Jennifer has $42,000 in currency which she deposits in her bank. If the reserve ratio is 50%, this will lead to a maximum increase of ________ in M1 throughout all banks.
An individual has to choose between two possible investments. The rst investment yields a net wealth of $100 with probability 0.5, and a net wealth of $0 with probability 0.5. The second investment yields a net wealth of $40 with probability 1.
Real estate magnate Donald Trump once proposed a one-time tax of 14.25 percent on the net wealth of every American with more than $10 million. Would this be an efficient way to raise tax revenue? Why or why not?
Jackie has the following utility function: Derive the equation for the marginal rate of substitution for this utility function. Solve for Jackie’s optimal consumption bundle.
You are the manager of a firm that receives revenues of $40,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Y and X is..
Mary's utility function is: U = ?x (cube route of x). She is faced with a lottery where she has a 50 percent chance of winning $8 and 50 percent chance of winning $64. What is the expected value of the lottery? What is Mary's expected utility? Why ar..
Why does hedging usually take place with a forward contract.
In a Keynesian framework, using an AD/AS diagram, which of the following government policy choices offer a possible solution to a recession? Which offer a possible solution to inflation?
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