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Robinson Crusoe receives utility from eating coconuts and fish. His utility function is U(C, F) = C + F, where C is units of coconuts and F is units of fish. If the price of coconuts is $10 and the price of fish is $1, what can you say about the bundle (combination of fish and coconuts) that maximizes Robinson's utility? (Note: you do not need to but you can make additional assumptions if it helps you answer the question).
Explain Deming's "System of Profound Knowledge".In your explanation, state why he developed it, how it ties in to his fourteenpoints, and explain each of the components of the system.
Petra borrowed $12,500 thirty months ago from a lender who charges interest of 4.05 percent compounded monthly. She wants to borrow $10,000 more today. The original lender will not increase her loan, so she has found a new lender
Why must the total value of expenditures in the economy be equal to total income? Is the value of intermediate goods and services included in GDP? Explain.
Germany consumers have $50 in income "their gross domestice product". They spend $35 on consumer goods "$25 on Germany goods and $10 on imports", they save $8, and pay $7 in taxes. The government collects $7 in taxes and spends $10 on locally-made..
Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?
In October 2004 and 2005, real GDP in the United States increased by 3.6 percent, while nonfarm payroll jobs increased by only 1.4%.
Demand by senior citizens for showings at local movie house has a constant price elasticity equal to-4. The demand curve for all other patrons has constant price elasticity equal to-2.
Illustrate what are the best goals for the Fed. Should it lean toward restraint or toward expansion.
The problem is belongs to economics, particularly to macroeconomics and it is explains the short-run, it is easier for a country to maintain a peg that undervalues a currency.
Explain the relationship between electoral systems and party systems. Answers should be sure to assess this question from the perspective of both proportional representation and single-member districts and provide examples to support your points.
Economics 442: Macroeconomic Policy - Problem Set 1. Assume G increases by ΔGO, and is completely bond financed (and there are no portfolio effects here). Calculate the government spending multiplier
Elucidate if you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than the "full employment" unemployment rate.
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