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The notion of sustainability is not the same in the natural sciences as in economics. In the natural sciences, sustainability frequently means maintaining a constant physical flow of each and every resource (e.g., fish from the sea or wood from the forest), while in economics it means maintaining the value of those service flows. When might these two choices lead to different choices? Why?
Suppose that in an hour Chip can gather 8 pounds of fruit or 4 pounds of nuts. In an hour, Monk can gather 9 pounds of fruit or 3 pounds of nuts. Who should specialize in gathering nuts? Monk or Chip? both? or neither?
Hyman Minsky’s “financial instability hypothesis” employs the key concept of financial “fragility.” What does it mean to describe a financial environment as “fragile”? Finally, on what grounds does Minsky also claim that, in the long-run (over the co..
The ABC Corporation is contemplating purchasing a new computer system that would yield a before-tax return.
Consider a series of end-of-period CFs spanning 2043-2050, which increase by a fixed amount each period. The amount of the first CF in the series is $90 and the increment is $77. The nominal interest rate is 1.8%; compounding occurs 9 times per year...
Suppose that the K/L ratio is higher in Germany than in Britain. What would you expect to happen to wages in Germany as trade took place between the two countries? Why?
A natural gas well is projected to produce $200,000 in profit during its first year of operation, $190,000 the second year, $180,000 the third year, and so on, continuing this pattern. If the well is expected to produce for a total of 10 years, and t..
Given the formal structure of the Solow model, the numbers in the first column should in principle be per-worker GDP numbers. However, for purposes of the problem.
Explain how you would calculate the price elasticity of demand of gasoline? In general terms, explain how consumer and producer surplus will change as a result of this price increase?
What are the optimal penal codes if there are two firms, competition is Bertrand, marginal costs are equal, and capacity is unlimited? Explain why a firm might prefer a meet-or-release MCC to a no-release MCC.
f merging carried with it no cost advantage, determine the number of firms needed for the merger to be protable
What should have happened to the risk premium on Ukrainian government bonds after Russian troops invaded the Crimea in Late February? You need graphs and a brief written explanation to answer this question.
Elucidate the cutthroat competitor's reasons for not raising or lowering his price, thereby accounting for the kink in his demand curve.
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