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Consider a family that ranks combinations of household production time (N) and purchased goods and services (Y) according to the formula: U=NY. Suppose the maximum time available in a day is 16 hours, the wage rate is $4 per hour and the family receives $20 per day in non- labor income. Due to a recession the husband loses his job. Assuming that U =0.5, would an hour spent in the labor force searching for a job make the husband better off or worse off? Would the worker continue to be a member of the labor force under these conditions? If not, how would he be categorized?
Formulate a linear programming model for this problem and prepare the initial tableau if the problem is to be solved using simplex
Analyse the determination of the appropriate amount of undeveloped land along this river as an externality and public goods problem
Why do people hold their wealth in the form of money rather than another asset that will provide a rate of return higher that the rate on return
In the Reflection Before Action: The Statistical Consultant Confronts Ethical Issues article, the authors cite the American Statistical Association's Ethical Guidelines for Statistical Practice (see the section "Ethics Provides A Defensible Respon..
Three months ago you purchased, at par, a $100,000 bond with a stated interest rate of 5%. Today, the Federal Reserve announced that it is reducing the discount rate by 0.5%.
Calculate the price elasticity of demand for Einstein's Bagels and explain what it means and derive an expression for the (inverse) demand curve for Einsteins's Bagels.
Analyze the characteristics of each of these goods. Focus on the characteristics that define each good as public or private.
At a price of $24, should a perfectly competitive firm operate or shut down in a the short run if its TC is given as:
Suppose the consumption function is c = $400 billion + 0.8y and the government wants to stimulate the economy. By how much will aggeregate demand at current prices shift initially (before multiplier effects) with A $50 billion increase in governm..
What happens to the student's budget line? Illustrate the change with new books on the vertical axis. Is the student worse off or better off after the price change. Explain.
Clear Limited produces Plasma TV and distributes to retailers under her own house brand. Recent trend in market seems to favour adoption of TV using either LED technology.
What is the relationship between productivity and the cost of production, and how does the cost of production vary over the short- and long-run?
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