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An economics professor went out to dinner one night and observed one of her students drinking heavily. The next day was a final exam. When the professor's husband found out the student was in her class, he said the student's behavior was irrational. The professor disagreed. Under what condition is behavior irrational according to the properties of consumer behavior discussed in the chapter? What situations could make the student's behavior rational?
Following the collapse of systemically important banks in 2008, were the G-20 group of countries right in early 2009 to coordinate their fiscal policies and increase government spending? How would you distinguish the effect of such a policy on (i) co..
There are two electric motors that can provide 100 hp. Alpha motor can be purchased at $1,400 and has an efficiency of 80%, an estimated life of 10 years, and estimated maintenance costs of $50/year. Beta Motor will cost $1,000 and has an efficiency ..
What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and PX = $10, PY = $15, X = 30, and M = 600? (Note: X is the quantity of good X purchased and M is Income)
Why monetary policy conducted independently in the United States and is the intended effect always achieved or why not.
What is the indicator status of the Private Nonresidential Fixed Investment? Explain. What is the indicator status of Business Permits and Housing Starts? Explain.
The median household income in Louisiana is approximately $52,000 per year, while the median household income in Massachusetts is about $79,000. From the perspective of trying to maximize your income per capita, which state will have higher increases..
Suppose that, over a 564 day period, Mike Inc.'s stock price experienced (negative) Log Returns of -14%. Convert the Log Return into a Standard Return. What would the annualized Standard Return be?
"Explain why unemployment is always equal to zero in a competitive labour market with perfect information. provide two economic mechanisms to explain why we observe positive unemployment in the world when there is imperfect information"
Forecasting models can be divided into three groups
Explain the theory that education acts as a signaling device' How does this contrast to the theory of education as an investment in human capital? Explain the difference between inferior goods and normal goods' As a developing economy experiences inc..
For a given level of inflation expectations, if the central bank increases the money supply growth rate, then in the short run
The management of the Mini Mill Steel Company estimated the following elasticity for a special type of steel it produces: Ep=-2, Ei=1, and Exy=1.5, where X refers to steel and Y to aluminium. These are, respectively, the own-price elasticity, income ..
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