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What is the basic economic problem that all persons, businesses and countries face? What are the differences in the way a market process vs. a command process attempt to deal with the basic economic problem? What is the difference between Economic Profits and Accounting Profits? Discuss the importance of taking into account the opportunity costs (implicit costs) in investment decisions. Illustrate your discussion with examples.
Would there be any difference in the set of variables used in a regression model of the demand for consumers durable goods ( automobiles, appliances, furniture) and a regression model of the demand for "fast- moving consumer goods" ( e.g. , food b..
If there is too much deflation: A liquidity trap arises when:
Due to an expanded growth in a city, new waste capacity is needed. A new truck is evaluated to replace the presently owned. The interest rate is 8%.
Hikaru consumes only sashimi and ps4 games. The price of a sashimi is p1 = $3 and the price of a ps4 game p2 = $10. Suppose that if Hikaru buys 10 pieces of sashimi and 6 ps4 games, he spends his income completely. Find Hikaru’s income and plot his b..
Religious practices often influence culture and worldviews. How does religion inform personal culture? What role do personal religious views play in communication?
For each event given below, respond to the following points using the determinants of demand and supply: Determine whether demand or supply changes or if the event instead causes a change in quantity demanded or quantity supplied. State whether the c..
A business with technology can be described by the production function y = 4z1^1/2 + 2z2^1/2 . Assume that input 2 is fixed in the short run: z2 = 9. Also assume that the firm faces output price p = 6 and input prices w1 = 2 and w2 = 6. Solve for th..
module learning outcomesbullunderstand the purpose and key parts of a business planbullknow how strengths weaknesses
US imports oil at the world price, $35 per barrel. The domestic supply curve in barrels per day is S = 3500000 + 350000P with P in dollars. Domestic demand curve is D = 60,000,000 - 500000P. Draw the US demand and supply curves for oil and indicate h..
Assuming that factor markets are otherwise free and competitive, explain why the higher real wage would fail to increase the share of labor income in national income.
If average variable costs are increasing while average total costs are decreasing, then A) marginal cost must lie between average variable and average total costs. B) marginal cost must equal average variable cost. C) marginal cost must equal average..
A risk neutral principal hires a risk neutral agent to work on a project. The project can either yield high output h or low output l. The probability of h depends on the agent’s unobservable effort e. With probability 1 − e the output is low.
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