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Suppose the price of hot dogs in years 1, 2, and 3 is $1, $2, $3. The price of veggie burgers is $2, $3, $4 for those years. The basket of goods is 4 hot dogs and 2 veggie burgers. Compute the cost of the basket for the first year.
“College students succeed or fail based on their degree of academic engagement.” This statement is an example of which sociological perspective?
Suppose that the US current account deficit must be reduced. Explain in terms of CA ≈ (S – I) + (T – G) what must be done to reduce the current account deficit. Why will this be difficult? (Hint: It may be helpful to think about the household that ha..
Given all the above factors, which candidate should be selected? (b) By how much would the estimated capital investment for the alternate candidate [the candidate not selected above in (a)] have to vary from your first decision in (a)?
In contrast to a socialist economic organization, how would a capitalist system differ. Consider who owns capital (means of production) in two models.
Who has more information in the job market: the job seeker or the potential employer? Why? What information does one person have that the person does not? "All our projects are discounted at the same interest rate," says the treasurer of a large comp..
Explain how open market operations affect the money supply, interest rates, investment and GDP. If output is above/below full employment, explain how and why an increase/decrease in wages and prices will bring the economy back to full employment.
The New Lombard Street, Merhling (2011) quotes Fischer Black(1970) in saying: Thus a long term corporate bond could actually be sold to three separate persons. How does the separation of risk work? What financial instruments are needed? Give an expla..
Use the IS-LM model to illustrate graphically the impact of the Pigou effect on the equilibrium level of income and interest rate during the Great Depression, when prices were falling.
Contrast two or three key economic factors for this country with the U.S. economy, and comment.
With economic development comes each of the following, except; an increase in the stock of capital, a declining wage rate, a decline in the birth rate.
Why does the government grant patents to investors? Why does the government give monopoly power to utility companies?
If Sammy refuses to contribute to the butterfly garden, he'll not be able to enjoy its benefits if it is built.
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