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Suppose your marketing department does a survey of potential users and finds that these users place the following values on the two versions of your software:
If the numbers of home and commercial users are equal, and you cannot distinguish between commercial and home users, what is the most profitable pricing strategy? Assume the MC of production is zero.
The supply of meat in France rise, results meat prices to fall. Lower prices always mean that French households spend more on meat.
Compute the producer surplus from parts a and b. Are producers better or worse off as a result of international trade? Discuss why.
Which interest rate represents the opportunity cost of holding money - the real or the nominal interest rate? Explain and argue intuitively why the nominal interest rate (eg, the yield on a riskless bond) cannot fall below zero.
Estimate the linear trend in the data, and use it to forecast gasoline sales in the United States in each quarter of 1990.
Using the monetary tool(s) of your choice what would you do? You need to graph a money demand and supply graph, an Investment graph, and a GDP graph to show how monetary policy effects GDP.
Assume you were appointed economic adviser to a less-developed nation in Africa. The nation seeks to encourage capital formation and wants to increase the rate of saving.
Can you find an example of natural resource policies (in the USA or elsewhere) that attempt to achieve efficient rates of harvest for renewable resources?
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
calculate the expected value of each investment. draw a bar chart for each investment. calculate the standard deviation of each project. Determine which of the two investments the investor should choose.
Elucidate what is your interpretation as to whether or not capital gains taxes should be raised or lowered.
Provide two terms which you have heard in the mass media, political arena, or in any other venue.
Explain poor benefit from growth. Illustrate what kinds of policies are required to reduce the magnitude and extent of absolute poverty.
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