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Suppose in an overlapping generations model, two goods are produced. The young can produce both goods while the old can produce none. a) Assuming that both goods depreciate completely at the end of each period and there is no money in the economy, what is the optimal allocation for the young and old generations? b) Is this Pareto optimal? c) Suppose one of the goods only depreciates at 50%. What are the new allocations?
1 which of the following statements is true about investment? a planned investment must always equal actual investment
What are (a) the advantages and (b) the disadvantages of cost-plus pricing? (c) Why is incremental cost pricing the correct pricing method? Why is full-cost pricing equal to it?
explain the law of demand and law of supply. what factors influence each? what is meant by market equilibrium? give an
Compare the traditional view versus the view of Ricardian equivalence of the effects of a debt-financed tax cut on:
1. Why is there such a difference in Asia's share of global real GDP, depending on whether the computation uses purchasing power parties or exchange rates 2. Why is Asia's "economic size" so much smaller on a per capita basis than on an absolute ba..
Is the economy experiencing inflation?
Suppose you own an insurance company. Further suppose that this market is composed of only 3 people. Further still, supposed that this insurance is full coverage and medical expenses are always $1000. It would be logical to also assume conditions ..
1 a bank can lend out its excess reserves but not its required reserves.a trueb false2 a bank creates money when ita
you will apply important microeconomics concepts toward the competitive strategies of an organization that operates in
Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.
When you buy a set of speakers, Best Buy asks if you would like to purchase insurance for your speakers. Assume that paying for new speakers for customers who listen to music at a reasonable level (thus minimizing damage) costs, on average, $150, ..
Suppose the Clean springs water company has a monopoly on bottled water sales in California. If the price of tap water increases, what is the change in Clean springs' profit maximizing levels of output, price, and profit
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