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Q1. Jeremy derives all of his utility from consuming milk shakes; he devotes hi entire $20 allowance to milk shakes each week. Suppose the price of milk shakes rise from $2 to $4. Compute Jeremy's Compensating Variation and Equivalent Variation.
Q2. Sets out the aggregate demand and aggregate supply schedules in Japan. Potential GDP is 600 trillion yen. What is the short-run macroeconomic equilibrium? Does Japan have an inflationary gap or a recessionary gap and what is its magnitude?
Bud Owen operates Bud's Package Store in a small college town. Bud sells six packs for off-premises consumption.
Suppose she is offered a new job that would pay her $15,000 and would bring her earnings high enough so that she no longer qualified for any welfare benefits.
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
It comes to global expansion and setting up affiliates aboard, how is a service company's focus different from that of a manufacturing company
Suppose that in the 1990's, the average retail price of a roll of Kodak film was $6.95 and that Kodak's marginal cost was $3.475 per roll. Based on this information, discuss industry concentration.
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
Explain the logic of the Ricardian view of government debt and evaluating its practical relevance.
Do protectionist policies benefit producers, consumers, workers, or the government
If she neither borrows nor lends, which project has the higher present value at the interest rate 50%. Which has the higher present value at an interest rate of 5%.
What are the factors that affect pay differentials? How does each factor increase or decrease relative wages?
The manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months
Representatives were to logroll (trade votes) to get their preferred policy to pass, what would be the result. What are the total benefits from each project.
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