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Using the broken window fallacy as described in “In The News” (p. 14 of Principles of Microeconomics), explain why some journalists, policy makers, and others proclaim that natural disasters are good for the economy in terms of eliminating old infrastructure and helping to create jobs. Do you agree or disagree? Provide specific examples to support your answers.
q1. jeremy derives all of his utility from consuming milk shakes he devotes hi entire 20 allowance to milk shakes each
Assume that the level of GDP increased by $100 billion in a private closed economy where the marginal propensity to consume is 0.5. Aggregate expenditures must have increased by.
Consider we did technological change in the class where it does contribute to one side of the production use that to understand the problem.
Which gamble would a risk-averse person most prefer? risk neutral-person? Risk-seeking person?
A man is planning to retire in 20 years. He can deposit money for his retirement at 6% compounded monthly. It is estimated that the future general inflation rate will be 4% compounded annually. What deposit must be made each month until the man retir..
What would happen to the equilibrium price and quantity of latte´s if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make latte´s, and scientists discovered that latte´s cause h..
A monopolist faces a price function given by P = z(36 - 2Q), where P is price, Q is total output and z is the quality of product sold, which can take on only two values. The monopolist can choose between a low quality product z = 1 or a high-quality ..
Draw the average and marginal revenue curves and the average and marginal cost curves. What are the monopolist’s prot-maximizing price and quantity? What is the resulting prot? Calculate the firm’s degree of monopoly power using the Lerner index.
q1. the wall street journal once stated regarding fannie mae and freddie mac that their profit is privatized but their
During 2009, the demand for LCD televisions appeared to be falling. At the same time, some industry observers expected that several smaller television manufacturers might exit the market. Use a demand-and-supply graph to analyze the effects of these ..
A teacher invests $5,000 at the end of every year for a 30-year career. If this teacher wants to have $1,000,000 in savings at retirement, what interest rate must the investment earn?
Why is the shadow banking system an important part of the? 2007-2009 financial? crisis? The shadow banking system was able to take on significantly less risk than other financial? firms, preventing the economy from losses.
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