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The utility that Meredith receives by consuming food F and clothing C is given by u(F, C) = FC. Suppose that Meredith?s income in 1990 is $1, 200 and the prices of food and clothing are $1 per unit for each. However, by 1995 the price of food has increased to $2 and the price of clothing to $3. Let 100 represent the cost of living index for 1990. Calculate the ideal and the Laspeyres cost-of-living index for Meredith for 1995.
Which of the following are reasons that economists use to explain the decrease in the natural rate of unemployment between the 1980s and the early 2000s in the United States? the aging baby boomer generation is at an age when they are more likely to ..
Apple put on the first smartphone, making them the Stackelberg leader. Samsung, HTC and Sony release their smartphones some time later. Consider the market competition game between these three companies. Characterize the output level for each firm an..
The engineering firm is considering to keep the crane for future projects. The cost of the crane is the one described in problem 2 (including transportation costs). Its market value at the end of year one will be $300,000 decreasing by 15% every year..
Horsehead, Massachusetts lies on a bay inhabited by lobsters. The town council issues permits for trapping lobsters and is trying to determine how many permits to issue. Graph the marginal revenue and marginal cost curves for operating a boat. Suppos..
Jerry went to a nightclub last weekend. He met a good-looking woman and they hit it off. They spent the night in a motel. When he got up the next morning, the woman was gone. When he went to the bathroom, he saw a message scrawled on the mirror in li..
A knitting shop orders yam from three suppliers in Toronto, Montreal, and Ottawa. One month the shop ordered a total of 114 units of yam from these suppliers. The delivery costs were $79, $45, and $63 per unit for the orders from Toronto, Montreal, a..
Describe the pros and cons of protectionism and free trade. Discuss which you feel is better for the economy? Why?
how the limit on the amount of reimbursement is not the only effective way to decrease expenditures for health care if health care providers succeed in increasing the demand.
Identify economic forecasts for real GDP, the unemployment rate, the inflation rate, and a key interest rate. What do your forecasts imply about the relative strength of the economy over the next two years.
Find the annual 10-K report for Green Mountain Coffee Roasters (GMCR) online for 2012 (filed in September 2012). Answer the following questions from its balance sheet: How much cash did Green Mountain have? What were Green Mountain total assets? What..
What is the mission and legal mandate of the Federal Reserve System? What policy tools are available to the FED to achieve their mission? What is the difference between an insolvent bank and an illiquid bank? Why/how does the FED treat banks that are..
Suppose nuclear power plants are banned in the U. S. What are the opportunity costs of this decision?
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