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Describe how the budget constraint of a household in a two-period model is affected by each of the following changes. In each case, do you think that the household is better off or worse off, or is the answer ambigous? If ambigous, what does the answer depend on?
a. Period 1 income is lower.
b. The interest rate is higher.
c. Period 2 income is lower, and the interest rate is lower.
Read "A Possible Perspective on Growth and Stagnation Over the Past 200 Years" posted on Blackboard. a. Describe the 4 reasons that Acemoglu gives for why the world did not experience growth before 1800. Name the 3 structural transformations underwen..
I need help with identifying 5-realistic and important factors that will contribute to a successful United State economic recovery over the next 5-years.
Illustrate what the pricing and non pricing strategies that firms rely on to compete in monopolistic competition and oligopoly market models.
MacKenzie believes that his citation of past and current unemployment figures, including those that break down the statistics by groups of age and ethnicity, is empirical proof that minimum wage = unemployment. Confront this assertion from the per..
You have been hired as a plant manager for a firm that produces widgets (Q) in Angola, Indiana. Widget production requires machine time (K) and labor time (L).
The Affordable Care Act signed into law on March 23, 2010 requires individuals to be enrolled in a health insurance plan or face monetary penalties. This is known as the individual mandate. What is the economic justification for such provision in..
Explain why is the "1 free" free to the buyer but not to society. At which point if any should the government regulate such promotions like these.
In this year's SuperBowl, the Green Bay Packers will face the Pittsburgh Steelers in Arlington Texas. Tickets are available on web sites such as StubHub starting at approximately $1,000 per ticket, with prices rising significantly based on seat lo..
Does the principle of "increasing opportunity cost" hold in this nation? Explain briefly.(Hint: What happens to the opportunity cost of bread-measured in the number of ovens-as bread production increases?)
Use the following equations for exercises 16-18. C=$100+0.8Y, I=$200, G=$250, X=$100-0.2Y 1. What is the new equilibrium level of real GDP if government spending increases by $150? 2. What is the new equilibrium level of real GDP if government spendi..
Raising chickens requires several types of feed, such as corn and soy meal. Consider a farm in the former Soviet Union. Try to describe how dicisions on the number of chickens to be raised, and the amount of each feed to use in raising them, were ..
Explain the difference among comparative advantage and absolute advantage. Explain how economies benefit with specialization and trade.
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