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State whether the following is true or false. Explain your answers.
a. Daniel consumes food and newspapers. Given that these are the only two goods he consumes, it is possible for both food and newspapers to be inferior goods for Daniel.
b. Sister Prudence, a nun in the Dominican order (a Catholic religious order), has taken a vow of poverty. Her preferences must therefore violate one of the assumptions underlying utility theory.
c. If all prices and all income increases by 10%, it should not affect the optimal choice or wellbeing of the consumer. Because of that, inflation is not important.
Suppose John now has W = $4900 and foresees that there is 50% chance encountering a big loss of $4800 in the future. Assuming that John's preference can be described by the utility: U ( W ) = sqrootW. What is John's expected future wealth? What is Jo..
If you purchase a $25,000 car, which is to be paid for in 60 monthly installments of $489.15, what effective annual interest are you paying for this financing arrangement?
The guest speaker sat down to a warm round of applause. Jim Hoffman was a well-known local consultant with a seemingly unlimited repertoire of humorous stories and anecdotes. And his subject, “The Dangers of New Product Introductions” always went dow..
Fiscal policy, the money market, and aggregate demand Consider a hypothetical economy in which households spend $0.50 of each additional dollar they earn and save the remaining $0.50. Use the purple line (diamond symbol) on the graph at the beginning..
Elucidate what could be done to encourage people to spend more so as to increase aggregate demand and invariably, create employment possibilities.
If price controls are initiated, we would expect that
Evan and Wurster discuss the trade-off of “richness and reach” in the environment of decreasing costs of information technology and information. How does this trade-off affect business strategies? Please present an example of a transformed business.
The benefits of an oil spill prevention program include avoided costs, fewer disruptions to normal shipping operations, etc. Cleanup time is consuming an expensive. A typical 1000 oil spill might cost $600000 to clean up or $300000 to prevent in the ..
annual profits which estimate to be 85 million per yr for a 20 yr period. at a corporate MARR of 10% per year, Does project indicate it will make at least the MARR.
The real exchange rate approach to exchange rate determination is based on: q$/€ = R$/€ × PEU PUS or R$/€ = q$/€ × PUS PEU a) Given PUS = 115, PEU = 105, and R$/€ = $1.35 per euro, compute the real exchange rate. write an equation to show a formula f..
The primary reason women tend to be paid less than men on average is: The expected rate of profit is greater than the interest rate.
Today more workers in the US are members of lavor unions than any time in our history. Today labor unions are weaker than anytime in the last 100 years. No major labor union has called a strike since the 1940s.
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