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1. Explain why scarcity leads to trade-offs.
2. What determines the slope of the consumption choice budget constraint? The labor-leisure budget constraint? The intertemporal budget constraint?
3. Does the economic approach specify what choices people should make? why or why not?
4. What are the three components of the interest rate?
Draw the inter temporal budget constraint. Be sure to label the axes, endowment point and the absolute value of the slope. Suppose that the individual’s interest income is taxed at 25% in both periods, and that interest payments are deductible at 25%..
All the costs of exhibiting movies are fixed except for the $3.50 royalty payment you must make to the film distributor for each ticket sold. What price should you charge for movie tickets?
Discuss why demand curve faced by a Perfect Competitor is assumed to be perfectly elastic and that of a Monopolist less elastic.
(External Costs with Variable Technology) Think of an industry that pollutes water and has access to variable technology for reducing that pollution. Graphically illustrate and explain the impact of each of the following, other things constant, on th..
What is purchasing power parity? How is it different from exchange rate? Demonstrate difference between the two.
A survey of economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following.
How do fixed costs play a role in your analysis? What is the difference between shutting down and going out of business?
Comment upon Hollander’s (1992) suggestion that the leader-follower relationship is strongly affected by the “perceptions, misperceptions, and self-oriented biases” brought to the relationship by the follower.
Specifically describe how the size of the "float" (time it takes to clear a check from orignation through multiple banks) affects the money supply?
What is the discrepancy between net benefits and the benefits cost ratio? That is, typically why is the maximization of net benefits the same as the maximization of the benefits cost ratio?
Gail works in a flower shop, where she produces 10 floral arrangements per hour. She is paid $10 per hour for the first eight hours she works and $15 an hour for each additional hour she works. What is the firm’s cost function? What are its AC, AVC, ..
q.male and female turtles may experience different serum cholesterol concentrations in their blood. provide an
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