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A) in finding the optimal basket for a consumer we assume The preferences are exogenously given (we know the indifference map for this consumer) what can change the preferences and why? What would be the effect of change in preferences on a consumers’ willingness to pay?
Elucidate how can you derive an equation describing labor demand in this economy as a function of the real wage also capital stock.
A goal of the consumer is to maximize utility. On separate diagrams, plot the income-consumption curves for X1 and X2. Explain why each has the particular shape drawn.
When companies expand into the international arena, they do so either because their home market has matured or because they see real opportunities in the foreign market. Discuss which kinds of international strategies are most appropriate for compani..
Many professional accountants believe that the main purpose of accounting standards is to protect the public. With that in mind, what do you think are the main objectives of the AICPA code of professional conduct and how does the code relate to prote..
Discuss how both the fiscal and monetary policies in the United States and in the Bible relate to the model of aggregate demand and aggregate supply and the issues involved in implementing the policies.
A consumer has preferences u(x) = 2x 1 2 1 + x2. The price of good 1 is p1 > 0 and the price of good 2 is 1. You may restrict your attention to interior solutions throughout. Explain whether these preferences are i) monotonic, ii) quasilinear, iii) e..
Country Analysis: Essay Using the business and country selected in Unit I, prepare a Word document of the political structure and economic environment, including important political events that may lead to success or high risk due to business expansi..
What does this imply about the relationship between the elasticity of the product demand curve and the magnitude of the scale effect? What does this imply about the relationship between the elasticity of the product demand curve and the elasticity of..
Adding four or more flights to existing routes, it will have to add two pilots also flight attendants.
We manufacturer automobiles given the production function q = 5KL where q is the number of autos assembled per eight-hour shift, K is the number of robots used on the assembly line (capital) and L is the number of workers hired per hour (labor). If w..
Banks manage their assets in a variety of ways. Explain the importance of “liquidity management”? What is the concern of the bank in regard to the liquidity of its assets? What can banks do to management liquidity risk?
Show graphically and explain how long-lags in the effectiveness of monetary policy have the potential to lead to acceleration in the inflation rate. (Assume that the economy is in a recession when the Fed enacts the monetary policy change.)
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