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Sometimes it is convenient to think about the consumer's problem in its "dual" form. This alternative approach asks how a person could achieve a given target level of utility at minimal cost.
Develop a graphical argument to show that this approach will yield the same choices for this consumer as would the utility-maximization approach.
For several years, Palm was the dominant manufacturer of PDAs (personal digital assistants). However, a number of other manufacturers have since entered the PDA market.
Suppose the U.S. is in the midst of a recession and a new president has just inherited an already large public debt.
Assume that the United States is initially operating at its full-employment level of output and prices and wages are eventually flexible both upward and downward. Construct a long-run AD-AS model.
Suppose that two power plants, company 1 and 2 release sulfur dioxide (SO2) in a small urban community that exceeds the emissions standard.
Discuss how the Market trends of Starbucks Coffee WILL FACE. Focus on how each of the following will change or will not change and Way.
Consists of performing application oriented exercises wherein specific economic principles learned in this course are put to practical use.
Consider an exchange economy with two goods, 1 and 2, and two consumers, A and B. The consumers are initially endowed with a total of unit of each good, i.e. w1 = w1A + w1B = 1 and w2 = w1B + w2B = 1.
Note that the first set of numbers represents the various incomes; whereas the second set of numbers represents the number of people earning each of these incomes. For example, in Avataria there are 50 people with the income of $100, 25 people wit..
Discuss the difference among inflationary gap also deflationary gap.
In 2008, AIG was at risk of declaring bankruptcy and defaulting on its debt. As a result, the U.S. government stepped in and provided funding for AIG, essentially insuring creditors that they would recieve their debt payments. After the government..
Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B 1. a general technological advance 2. a technological advance in the consumer goods industries 3.a decrease in unemployment
If the demand for money depends positively on real income and depends inversely on the nominal interest rate, illustrate what would happen to the price level today if the central bank announces.
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