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Adam Smith’s Theory of the Invisible Hand is often used to justify a hands-off approach to market activity. Can you give an example where government intervention in a market led to an inefficient outcome? How about an example where government intervention improved the outcome?
An investor has utility for money given by U(m) = . He has three investment opportunities: I1 pays $100 with certainty, I2 pays $120 and $80 with equal probability and I3 pays $150 and $30 with equal probability. Which one should he choose? Would you..
Cameron visits a sporting goods store to buy a new set of golf clubs.
An engineering firm is interested in investigating whether the variability in the cost of small projects (defined as projects under $10 million) can be accounted for, in part, by differences in the number of direct engineering consulting hours billed..
Assume that there are 100 identical firms that would be willing to sell 10 units each of the same good if the market price were $5 per unit. They have identical individual supply curves that are positively sloped straight lines that go through the or..
Suppose the economy is in an inflationary gap. Which of the following public policies would not help the economy get back to potential real GDP?
Six Western states are considering laws to make gold "legal tender" in their states (Utah has actually passed such a law buy has not yet implemented it). If gold was made "legal tender" in those states, how effective do you think gold would be as (1)..
Suppose that the individual demand for a product is given by Q = 1000 - 5P. Marginal revenue is MR = 200 - 0.4Q. There are no fixed costs and so marginal cost, which is constant, is equal to average cost. That is, MC = AC = $20. Calculate the firm's ..
A firm’s demand function is as follows: Qx = 400 - 5Px + Py - 2Pz + 2I. Assume initial values of Px = 50, Py = 20, Pz = 20, I = 50. Determine the quantity of X that will be sold assuming the initial values. Develop the corresponding Total Revenue and..
Astrachan contends that ____ men express the most hostility when women enter into traditionally male occupations and are more threatened by the overall competence of women.
Find the optimal quantity of labor supplied by a consumer who has a utility function for leisure (l) and “goods” (y) of U(l,y)=ln(l)+ln(y) , no non-labor income, a wage of 10, and 2000 hours of time.
The determinants of productivity Consider a simple economy whose only industry is fishing. In this industry, productivity—the amount of goods and services a worker can produce per hour—is measured by the number of fish one fisherman catches per hour.
What is the method that is used by the RMI client to connect to remote RMI servers?
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