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Adam Smith rejected utility as a foundation for value. He illustrates this rejection in his famous diamonds and water paradox. Briefly explain how the cognitive switch from total utility to marginal utility resolves this paradox.
Assume that this cost is set by an upstream wholesaler with monopoly pricing power.
When government becomes heavily involved in tax-transfer activities, how will this involvement affect economic efficiency.
WSJ's Justin Lahars reports that counties throughout the U.S. have seen employment declines that can be attributed to the importing of inexpensive goods from China.
Sketch a simple T-account for First National Bank which has $5,000 of deposits, a required reserve ratio of 10 percent, and excess reserves of $300. Make sure you balance sheet balances.
When an incumbent maintains a price below the monopoly price in order to prevent entry. The act of charging a low price initially upon entering a market to gain market share.
Suppose V=$0, what is Jim's labor supply function now. Draw his labor supply curve. Illustrate what happened to his wage and substitution effects.
Explain why general level of wages is high in United States and or industrially advanced countries.
Firms often face the problem of allocating an input in fixed provide among different products.
Explain how does global economic competition impact the domestic market and decisions related to the strategy a firm uses to compete.
If the number of suppliers in the micro calculator industry increases, illustrate what would we expect to happen.
What asymetric Information can contribute to the onset of both a currency and financial crisis.
This exercise presents a simple example to elucidate how exchange-rate conversions can produce misleading results and how the PPP methodology works.
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