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1. Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always wiling to exchange three black shirts for one red shirt.
a. What type of preferences is Carl exhibiting?
b. Draw several indifference curves to illustrate Carl's preferences.
c. What is Carl's MRS?
d. Are Carl's preferences monotonie? How do you know?
e. Are Carl's preferences convex, strictly convex, or not convex? Explain/Show how you know
Present and future values for different interest rates. Find the following values. Compounding/discounting occurs annually. Round your answers to the nearest cent. An initial $700 compounded for 10 years at 9%. Define present value. How are present v..
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A company is a monopoly in the market for bottled water. It was two plants to produced bottled water.
In a Keynesian framework, using an AD/AS diagram, which of the following government policy choices offer a possible solution to a recession? Which offer a possible solution to inflation?
Illustrate what effect would customer expectations of substantial price increases in music players have upon the demand for portable music players in a completive marketplace
Explain, with the use of demand and supply diagrams, the impact on equilibrium price and quantity of membership to health clubs from the simultaneous impact of an effective advertising campaign by the National Health Council and the reduction of comp..
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The Marginal Rate of Product Substitution (MRPS) is the rate that one output must be decreased as production of the other output is increased. The most common form of MRPS is?
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An economy begins in long-run equilibrium, and then a change in government regulations allows banks to start paying interest on checking accounts. How does this change affect the demand for money? What happens to the velocity of money?
A more serious problem with input-based pay systems (e.g., a wage her hour), relative to an output--based system, is:
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