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Consider the truthfulness of the following statements. Assume that good x is on the horizontal axis and good y is on the vertical axis, and that preferences are complete, transitive, monotonic and convex.
I. If price elasticity of demand for good x is negative, good x must be a normal good.
II. If Doug’s income consumption curve for good x and good y is upward sloping, the demand curve for good y must be downward sloping.
a. Only statement I is true. b. Only statement II is true. c. Both statements I and II are true. d. Neither statement is true.
Why might the U.S. have a comparative advantage in bioinformatics but not in manufacturing and steel making.
Can the government make things worse by intervening in markets? Are there other options outside the markets and government that will fix macroeconomic failure?
An increase in government spending initially and primarily shifts which curve in what direction
Which of the following would cause the supply curve for bread to shift inward?
Discusses three different types of returns. Identify the item in the list below that is NOT one of those three types of returns.
Illustrate what is the relative labor supply in the economy. Derive it and draw it in the same picture as in part (a). Calculate the equilibrium relative price of labor.
Assume your firm has never distributed cash to its shareholders. However, now you are trying to determine the appropriate way to distribute some cash that is consistent with maximizing shareholder wealth. To clarify your thoughts you will draft a sho..
Identify four different types of Regional Trade Agreements (RTAs). 2. Examine the European Union (EU) and its current state. Discuss how the EU is related to RTAs. 3. Discuss the benefits and negative aspects of using a common currency.
Expand his shop in that way allowing more customers to be served on a Saturday morning?
Imagine you are in charge of development for a developing country and were approached by a multinational corporation interested in locating in your country. Identify some of the benefits and some of the costs to the host country from allowing a multi..
How might efficiency wages contribute to downward wage inflexibility, at least for a time, when aggregate demand declines.
You're given the following demand and supply tables: a. Calculate market demand and market supply. P D1 D2 D3 DMarket $30 20 5 10 40 15 3 7 50 10 0 5 60 5 0 0 P S1 S2 S3 SMarket $30 0 4 11 40 0 8 17 50 10 12 18 60 10 15 20 b. Draw the market demand a..
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