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The figure above shows a nation's production possibilities frontier for apples and oranges.
a. What combination of goods is represented by point A?
b. What combination of goods is represented by point B?
c. Which point represents an unattainable combination of goods?
d. The movement from point C to point D results in a free lunch. What is the free lunch?
Suppose that the opportunity-cost ratio for watches and cheese is 1C ? 1W in Switzerland but 1C ? 4W in Japan. At which of the following international exchange ratios (terms of trade) will Switzerland and Japan be willing to specialize and engage in ..
In the Keynesian view, would a constitutional amendment that would require the federal government to balance its budget (incur no deficit) be desirable? Explain your answer.
Suppose you will receive $100 in six months and have access to an account that earns 1/2% per month. If you deposited the money into the account how much would you have 18 months from now?
q.a coal-fired power plant can produce electricity at a variable cost of 4 cents per kilowatt hour when running at its
Increasing prices act as a signal to: The equilibrium price in the market represents the: Rising oil prices during the 1970s shifted flower production from California to Kenya. Which of the following answers explains this shift?
Suppose the premium on a 6-month S&R call is $ 107.5 and the premium on a put with the same strike price is $ 59.3. Assuming that the effective annual interest rate is 3 %, and that today's price for the non-dividend paying S&R index is $ 1,000, what..
Maximizing profit for an economist is:
How large is the bias in the CPI due to not immediately incorporating new goods.
The price elasticity of demand is: The demand curve for physician office visits is quite inelastic; therefore, a:
Calculate the firm’s maximized profit, and the revenue and cost that produce that profit. (h) Calculate the elasticity of demand at the profit-maximizing point. (i) What is the firm’s markup at the profit-maximizing point? Confirm that this markup ha..
If the company were to build the bridge, illustrate what would be its profit-maximizing price. Would that be the efficient level of output.
Compare and contrast the major negative fluctuation in the 1980s with that of the Great Recession (post-2007) with a focus on (i) the extent of the fluctuation and (ii) the speed of the recovery.
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