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Think about an extension of the specific-factors model, in which, in addition to their wage, labour also earns some part of the rental on specific factor in their industry, i.e., farmers who own their own land and manufacturing workers who salary includes a profit based bonus. Discuss how this extension affects the conclusion of the model
Jessica's preferences can be represented by a utility function: U(x, y) = max(x, y). Consider a bundle { x = 10, y = 3 }. Draw Jessica's indifference curve containing this bundle. Explain why her preferences are "non-convex"
Calculate John's optimal consumption bundle, (X, Y). (Hint: Since John's indif-ference curves are not smooth and \curvy", we cannot use MRS = MRT to solve for the optimal bundle. Draw a diagram to see where the John's optimal bundle must be on his ..
Explain why the assumption of imperfect competition is necessary for endogenous growth models. How might well enforced intellectual property rights actually lead to divergence rather than convergence?
The ABC Company deposited $100 000 in a bank account on June 15 and withdrew a total of $115 000 exactly one year later. Compute:
the real exchange rate is the nominal exchange rate, defined as foreign currency per dollar, times 1. US prices minus foreign prices 2.prices in the US divided by foreign prices 3.foreign prices divided by US prices 4.none of the above
Future economic glowth
the state of glottamora has 100 million remaining in its budget for the current year. one alternative is to give
a polling company obtains an alphabetical list of names of voters in a precinct. they select every 20th person from the
Is this microeconomic or macroeconomic? "More workers are being hired by the nation's businesses." Comment on the statement from an opportunity cost perspective: "The main cost of going to college is the $15,000 per year in tuition." Suppose that a ..
a pure monopolist sells output for 4.00 per unit at the current level of production. at this level of output the
you have been asked by a manager in your organization to put together a training program explaining net present value
Discuss the implication to Economic Efficiency of an economy operating at point and what would it take for the economy to operate at point Z?
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