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Vera, a single individual, receives $18,000 of dividend income and $38,000 of interest income from tax-exempt bonds. Vera also receives Social Security benefits of $16,000. What is Vera's gross income?
A firm has two production plants where they produce the same product. The cost function at plant #1 is A) If the firm wants to produce Q total units of output, what fraction of Q will be produced at plant #1? What fraction at plant #2? Show all wo..
Explain what does the transaction of a buyer and seller directly affect a third party. Is the effect a negative or positive externality.
Suppose an investor has the utility function U(R,s) = R - 0.3s^2 (Here, R denotes the expected rate of return (R) of their investment portfolio and s denotes the risk associated with that portfolio, but this information is not necessary to solve ..
Describe the effect of this loss on the loanable funds market. What will happen to the demand for loanable funds? Why? What will happen to the supply of loanable funds? Why? What will happen to interest rates?
Suppose demand for the firms watches falls permanently to P = 20 - Q/20,000. In view of this fall in demand, what output should the firm produce in the short run? In the long run? Explain.
Most Republicans need to reduce federal spending. Democrats do not want to reduce federal spending by as much as Republicans do.
Exchange and markets, Demand supply and market equilibrium
Illustrate what are some advantages of a unionized organization. What are some disadvantages.
What is the combined (total) demand schedule for Belgian cocoa beans that European and USA consumers buy?
21st century electronics has found a theft problem at its warehouse and has decided to hire security guards. The firm wants to hire the optimal number of security guards.
Production of each unit of output Q leads to a marginal external cost of $50, caused by pollutants emitted by the production of Q. If we add this marginal external cost to the market information, the equation for the social-cost supply curve is gi..
Explain how does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns.
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