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Suppose we want to study the relationship between a household's income and its spending on "essentials". We've collected some data on a variety of households, some of which you see here: Income and Spending for four households Both Income and "Essential" Spending are measured in thousands of dollars. Amazingly, these data, when plotted on a graph with Income on the horizontal "X" axis, line up perfectly on a straight line. What is the slope of this line? Give your answer to at least one decimal place.
What are the current account and the capital account in the balance of payments? For each of the international transactions below, determine whether it is a credit or a debit in the US balance of payments, whether it is a current account or capital a..
Suppose Janet sells papayas at a perfectly competive market in Tailand. While her average total caost reaches a minimum level of 43 her minimum average variable cost is $2. At what price will Janet reach the equilibrium level Will she sell any papaya..
In response to the recession of 2008, the US Federal Reserve Bank made several efforts to increase banks excess reserves, decrease interest rates for lending, and increase lending. These "extraordinary measures" have been somewhat controversial (at l..
Illustrate what would be the size of the resulting deadweight loss relative to the competitive outcome.
If you introduced and recommended this practical activity to the general public, do you think that a majority would adopt and implement this practical activity on a frequent basis in hopes of reducing negative effects associated with climate change? ..
Consider that you own a construction company and you need to make a decision on how many homes to build in a new residential area. It is estimates that there is a 20 percent chance of a recession, a 60 percent chance the economy will remain as it is,..
q1. corporate profitability declined by 20 from 2008 to 2009. what performance would you use to trigger executive
Explain factors that weaken the case for the public sector action such as: the special interest, the shortsightness effect, rent seeking, and weak incentives for operational efficiency.
When prices are (p1, p2) = (1, 2) a consumer demands (x1, x2) = (1, 2), and when prices are (p1, p2) = (2, 1) the consumer demands (x1, x2) = (2, 1). Is this behavior consistent with the model of maximizing behavior?
Evalute the shape of the indifference curves of the following utility functions and find MRS for each function.
The inverse demand for a homogeneous-product Stackelberg duopoly is P = 20,000 -4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 2,000QL and CF (QF) = 4,000QF.
Your current salary is $70,000 per year and you are planning to retire in 25 years from now. You anticipate that your annual salary will increase by $3,500 each year. You plan to deposit 5% of your yearly salary into a retirement fund that earns 6.75..
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