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Olivia has received a $15 gift certificate that is redeemable only for peanuts. Bags of peanuts come in two sizes, regular and jumbo. Regular bags cost 50 cents and contains 30 peanuts. Jumbo bags cost 75 cents and contain 50 peanuts. How many of each will olivia purchase? What if jumbo bags now cost $1? For each case draw a budget line that shows her best choice by adding indifference curves. Assume olivia cares only about the # of peanuts and not the bag size.
The largest loan that the bank can make on the basis of the new deposit. If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit.
During course of twentieth century, average workweek in United States has gotten shorter and Americans have enjoyed greater amounts of leisure time. How has this development affected potential GDP and labour productivity.
If labor costs rise you may consider substituting capital input for labor input. What factors do you need to consider when making this substitution?
Why do national income accountants compare market value of total outputs in various years rather than actual physical volumes of production.
One Tuesday the government announces two new policies. First, you must pay a head tax (lump sum tax) of $3 a day. Second, the government will subsidize the purchase of apples (but not of oranges) so that the price of an apple falls to 50 cents. Draw ..
Are you concerned that automation may increase unemployment or underemployment in the United States and around the world.
What could the federal reserve system Fed do in 2000 in order to bring the economy back to full employment ? What did the Fed actually do? explain
There is no evidence that the bar owners ever directly communicated. Do you think this is a violation of Section 1 of the Sherman Act?
What is a subgame-perfect Nash equilibrium proposal of player 1, and what is the resulting outcome of the game
Illustrate how do these two relate to each other in the Circular Flow Economy and to the Government and Foreign Sector components? How does all this fit on a Wheel of Income.
Why does the assumption of independence of risks matter in the examples of insurance.
How much could the store charge for an yearly membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy.
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