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According to the rational choice model, cash grants are preferred to food stamps because A. They enhance consumer choice B. Cash grants allow consumers to reach lower indifference curves C. Food is the most essential commodity D. Food would be cheaper to buy with cash
After wearing seat belts became malsoatory, drivers reacted by driving faster also less carefully. This is consistent with Illustrate what Principle of Economics.
Suppose a drop in the compensating wage differential between risky jobs and safe jobs has been observed. Two explanations have been put forward: Engineering advances have made it less costly to create a safe working environment.
A seafood restaurant in a beach resort town has a fixed (unavoidable) cost of $1,000 per month and variable (avoidable) costs of another $1,000 per month.
Trang has strictly convex indifference curves and is indifferent between the bundles (16, 2) and (2, 4). Use the definition of strict convexity to show that Trang prefers (9, 3) to (2, 4).
Converse alternatives to GDP as a measure of economic benefits in a current economy.
Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would lead to greater productivity in the weaving industry?
Between 1990 and 2006, the real value of the minimum wage declined, as measured using the CPI. Assume that the goal of the minimum wage policy is to maintain a constant standard of living for minimum wage earners over time (i.e. their utility, on ave..
Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. Who has the comparative advantage in the production of shirts? What about for computers?
Can policymakers stabilize both the price level and real GDP simultaneously in response to a short-lived but sudden rise in oil prices? Explain briefly.
To derive the uncovered interest parity (UIP) condition we assume, among other things, that there is free movement of capital across countries. Is there a variant of the UIP that we can expect to hold (given the other assumptions) under such asymmetr..
Monsanto, Corp paid dividends of $2.80 last year. Over the next three years the earnings and dividends are expected to grow by 10% per year. Thereafter, assume that the dividends will grow at a 5% rate forever. If investors required return on Monsant..
Identify a cultural practice that is considered acceptable in one country but is not acceptable in another. What are some cultural considerations that affect the resulting ethical perspectives in differing cultures?
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