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What are the two different general interpretations of the concept of duration, and what is the technical definition of this term? How does duration differ from maturity?
Suppose the following equations discuss a hypothetical economy where both the price level and interest rates are fixed.
Why is an increase in the number of varieties of a good regarded as a gain from trade? Can you think of economic disadvantages associated with greater product variety? Explain. Is the distinction between "intra-industry trade" and "inter industry t..
Illustrate what is offshoring of white-collar service jobs, and how does it relate to international trade. Why has it recently increased.
In a multibank system, an individual bank makes loans only up to the level of its excess reserves, while the whole commercial banking system can lend out money that is a multiple of the original bank's excess reserves. Why is there this difference..
Suppose you are a manager of a monopolistically competitive company, and your demand and cost functions are given by Q=20-2P and C(Q) = 104 - 14Q + Q^2
After a two-year testing period, Pat prepared the patent application to patent the device, and then found that just a month earlier one of Pat's testing customers had patented the device. Pat demanded that the customer give up the patent to Pat, ..
Perfect Competition If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development What condition would encourage research and develo..
Data collected in the imaginary economy of Kharkeez reveals that when the price of a bork increased by 20%, the quantity of bork sold decreased by 30%, and the quantity of perf demanded increase by 15%
Explain why would economists be very concerned if the annual interest payments on the debt sharply increased as a percentage of GDP.
If the local car wash changes its price for a supreme wash from $13 to $16 and the number of customers change per day from 50 to 40, what is the price elasticity of deman for this service? Is the demand for this service relatively elastic or rela..
Amaranda and Bartolo consume only two goods, X and Y. They can trade only with each other and there is no production. The total endowment of good X equals the total endowment of good Y.
Assume industry abatement costs rise from $850 million in 2004 to $1,000 million in 2005 in nominal terms and that CPI is 100 in 2004 and 106 in 2005.
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