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Harold consumes chardonnay and quiche. His utility function is U(c,q)=min{c,q2}. Draw a diagram showing three or four of Harold's indifference curves. If the price of chardonnay is$10 and the price of quiche is $3 and if Harold is consuming 4 units of quiche, how many units of chardonnay is he consuming?
The Census Bureau has formulated some alternative measures of poverty which, in contrast with the old measures: A.include before-tax income. B.include capital gains. C.do not include food stamps. D.do not include housing subsidies.
Explain why velocity of money systematically tends to increase in periods of robust economic expansion. What is the effect on velocity of money if the following occurs? Banks begin to pay high interest rate on deposits. Great uncertainty is created a..
Suppose the market supply in a Perfectly Competitive market reflects a constant marginal cost. Assuming the market demand is the usual downward-sloping variety (and linear), what value (i.e., a specific number) is the total Producer Surplus in the ma..
You recently secured an employment with medical benefits. Is there a difference in your demand for medical care services before and after employment? Use two demand curves to show your consumption of medical care before and after this employment.
llustrate what are the quantities produced before and after the tax was imposed.
In July 2012, the six adult cast members of the hit TV show Modem family filed a joint law suit against Twenty century fox Television in an attempt to vid their contracts. The lawsuit claimed that their contracts were illegal, in that the contracts b..
Jack deposited $500,000 into a bank for 6 months. At the end of that time, he withdrew the money and received $525,000. If the bank paid interest based on continuous compounding: What was the effective annual interest rate? What was the nominal annua..
Analyze the economic impact of current approaches to controlling air pollution to determine which approach is the most effective. Provide support for your rationale.
Suppose that you are a borrower with a project that has a rate of return of 6.8%. You submit a bid to borrow $1,000 at an interest rate of 5%, and a lender accepts your offer. After you fund your project and pay back your loan, what is your gain or l..
The ______________ effect helps explain why an increase in the price level causes a decrease in real gross domestic product.
A engineering firm plans to buy new software to improve efficiency. The software has an initial cost of $15,000, and is expected to increase profit by $3,000 per year. Determine the payback period for the software including the effect of interest usi..
Use the AS-AD model to describe what would happen to the price level and to the equilibrium level of aggregate output in the short run in the following situations: The Fed buys bonds in the open market during a period of low unemployment and no exces..
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