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For each of the following, describe some of the potential opportunity costs:
a. Studying for your economics test
b. Spending 2 hours playing computer games
c. Buying a new car instead of keeping the old one
d. A local community voting to raise property taxes to increase school expenditures and to reduce class size
e. A number of countries working together to build a space station
f. Going to graduate school
If the interest rate rises from 10 to 12%, compute what will happen to his consumption levels in period 1 and 2.
If Fly Right were to go out of business, it would be able to rent its plane to another airline for $30,000. Which airline has lower costs.
1. you are a commuter student at a local university. because of the steep rise in gasoline prices your parents decide
how the change in money supply affects investment demand and as a consequence, aggregate demand. What role dose the spending multiplier play in this process?
Why the adverse effect on output is larger when the Fed is decreasing money supply than holding it constant.
Assume the price elasticity of demand for heating oil is 0.7 in the long run also 0.2 in the short run.
Calculate the Golden Rule level of capital per effective worker and the saving rate associate with this steady state.
Economists argue that the move from barter to money increased trade and production. How is this possible.
firms marginal cost curve crosses marginal revenue curve at an output level of 1,000 unit. What is firms current profit. What is likely to occur in this market and why.
This graphing calculator illustrates the demand for spaghetti dinners served in all the restaurants in a society.
The other product is K9Grass for consumers who have pet dogs. The addition of these two new synthetic grass products is a way for Forever Lawn to increase its:
How much Wyandotte have to decrease the price of polyol to attain a 15% increase in the quantity sold.
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