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Which of the following does not cause the IS curve to shift up and to the right? (NRR)
(1) An increase in wealth
(2) An increase in total factor productivity
(3) An increase in the expected future output
(4) None of the above
Use separate graphs to sketch two indifference curves for people with each of the following utility functions.
Suppose you have a demand function given by: Q = 600 ? 0.5P. What is the price at which demand elasticity is Ed = ? 2? Hint: Instead of using price to find elasticity, you will now have to use elasticity to find price. You can use the point elasticit..
Identify the contractionary monetary policies among those listed below.
Suggest the substantive manner in which a low-calorie, frozen microwaveable food company could create a convergence between the interests of stockholders and managers. Indicate the most likely impact to profitability of such a convergence.
Bill is thinking of investing in a Silicon Valley start-up. His von Neumann-Morgenstern utility-of money function is U(w) = 9+w-(w^2/100) where w denotes wealth measured in thousands of dollars (thus w = 1 means $1,000). Would a risk-neutral person m..
Discuss why countries create barriers to trade when economic theory shows trade as being beneficial to a nation. Who benefits from international trade? Who loses from international trade? How can the negative effects of the failures from internationa..
In what way (or ways) is the current Knowledge Revolution a child of the Industrial Revolution? Is this a new revolution or simply an extension of the 18th-century revolution? Given the history, is it perhaps more appropriate to call the current revo..
A kinked demand curve is most likely to occur when other firms. The difference between the price firms would be willing to accept for their goods and the price they actually receive is called. The marginal product refers to the impact of which unit o..
Suppose that a biotech firm makes diagnostic tests and has a fixed-proportions production function in which one unit of output (diagnostic test) is produced using one worker and two units of capital (machines). Draw 3 isoquants for this production f..
Is it fair to miscommunication to the customer in this way? Are we being accurate, unambiguous, and clear? What’s the harm if the customer opens all the accounts?
Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX. Compute the equilibrium price and quantity in this market.
If the economy is facing rising levels of inflation, what would the Fed do with its three monetary control tools? Why does the Fed buy government securities during a recession?
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