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Suppose that they are thinking of each specializing completely in the area in which they have a comparative advantage, and then trading at a rate of 2.5 pounds of potatoes for 1 chicken, would they each be better off? Explain.
Suppose that you have utility as a function of income (I) given by the equation: \(U = \sqrt{501}\) Consider a lottery that provides a payoff of $0 with probability 0.75 and $200 with probability 0.25. What is your utility if you receive a sure..
Airframes are produced according to the production function: \(Q = (L^{1/2} + K^{1/2})^{2}\) Suppose the price of labor is $10 per unit and the price of capital is $1 per unit. Find the cost-minimizing combination of labor and capital to produ..
43 If the money supply rises , what must happen to GNP under the equation of exchange 44 What is the most important form of money in the U.S. 45 What is the most important instrument of monetary policy 46 Define federal funds rate
Draw the daily budget constraint without any program participation for the single parent described above. On the same graph, draw the daily budget constraint under The Texas Family Assistance Program for the single parent described above.
Suppose a random sample of size is selected from a population. Find the value of the standard error of the mean.
Supose we have two alternatives which have same output that is the same benefits. If we apply incremental B/C ratio the result gives 0. Can we assume that it is less than 1 and chose the lower cost alternative?
Describe the factor which determine the slope of the LM curve and whether an increase in theses factor(s) will make the curve flatter or steeper.
Why might a firm charged with violating the Clayton Act, Section 7, try arguing that the products sold by the merged firms are in seperate markets. Why might a firm charged with violating Section 2 of the Sherman Act try convincing the court that ..
Assume you fail to hedge, but the British ale seller decides to cut you a break and only pass through half of the pound appreciation.
Use the following information for a perfectly competitive firm and the profit-maximizing input-combination rule to identify how many workers firm will employ to maximize profits.
Define and describe the difference between the absolute advantage and the comparative advantage.
The Employment Act of 1946, passed by the U.S. Congress after World War II, a. made the Federal Reserve responsible for achieving and maintaining full employment b. identified specific behavior and targets for the conduct of U.S. foreign aid
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