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Derive the Pareto Optimal Conditions in a perfectly competitive world of two individuals(A and B), two goods (X and Y), and two inputs (L and K): (a) Utility Maximization, (b) Optimal Allocation of Resources, (c) Economy as a whole.
q1. what are the three most important factors driving economic growth? explain briefly using an appropriate example.q2.
Describe what is meant by a price-consumption curve. How can it be utilized to help determine an individual’s demand curve? How can one derive the market demand curve from the demand curves of the individuals who make up the market?
What factors led to the mortgage default crisis? How did mortgage defaults affect banks involved in mortgage lending and mortgage investing? Securitization? TARP? What do these mean? What are some of the major provisions of the Wall Street Reform and..
For each of the following characteristics, say whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither. sells a product differentiated from that of its competitors. has marginal revenue less than price
Compare and contrast the public-interest and special-interest theories of economic regulation. What is the capture theory of regulation?
Economists have argued that rent control is "the best way to destroy a city, other than bombing." Why would economists say this. Illustrate what problems might it face in the future.
Discuss a situation in which both parties entering into a contract could benefit from slightly ambiguous language contained in the agreement.
Discuss the power of compound interest and why compounding makes it important for people to save and invest for retirement early in their working life rather than waiting until they are close to retirement.
Joe can make apple pie at a lower opportunity cost than Sandy but Sandy can make more apple pies per day than Joe. This means that
Suppose a drop in the compensating wage differential between risky jobs and safe jobs has been observed. Two explanations have been put forward: Engineering advances have made it less costly to create a safe working environment.
American Girl doll has an inverse demand curve of P = 150 – 0.25Q, where Q measures the quantity of dolls per day and P is the price per doll. The marginal cost is given by MC = 10 + 0.50Q. What is the total surplus at the profit-maximizing output le..
Which statement most accurately captures the state of money today?
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