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1. How might a social critic respond to the claim that governmental involvement in the economy is unjustified because of the invisible hand theorem?
2. Why is the slope of the production possibilities frontier equal to the ratio of marginal production costs?
3. How might a critic respond to the claim that taxes always make the allocation of resources less efficient?
Starting salaries of economics majors have a mean of $47,000/year with a standard deviation of $8,000. What is the probability that a random sample of 100 majors will have an average salary of more than $50,000 year
Suppose a pizza parlor has the following production costs: $3.00 in labor per pizza, $1.oo in ingredients per pizza, $0.20 in electricity per pizza, $2000 in restaurant rent per month, and $450 in insurance per month. Assume the pizza parlor produ..
The firm will encounter no fixed costs, and all revenue is after taxes. As your firm has been granted an exclusive contract, your pricing and output decisions will be those of a monopolist.
The required reserve ratio is 0.25. What are the required reserves on this new deposit What is 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,
Use your knowledge of the factors that cause shifts in demand, and in a multi-paragraph essay, provide at least three reasons why ice cream sales fluctuate in this manner
Use the information in the following table, which summarizes the payoffs (i.e., profit) to two firms that must decide between an average. Referring to the table above, is this an example of a prisoner's dilemma game
. The challenger costs $6,000 and has O&M costs of $2,000 per year, increasing by $1,000 per year. The machine will be needed for only three years, and the salvage value at the end
Cameron is an investor trying to decide among the following three different investment options. Option A: Price today: $1000 One year from today Cameron will receive one of the following payments: $1,250 with a probability of 90% $1,000 with a pro..
Jesse sells 400 candles per month at an average price of $5 per candle. Costs of supplies to produce and sell the candles are $500. Rather than producing and selling candles, Jesse could be working at a second job earning $800 per month.
how much are households paid for providing entrepreneurial ability? $ billion for entrepreneurial ability b. If households spend $80 billion on goods and $70 billion on services, how much in revenues do businesses receive in the product market.
A newly graduated engineer bought furniture for $900 from a local store. Monthly payments for l year will be made. Interest is computed at a nominal rate of 6%. What interest is paid in the last month.
Econometrics:1) What is a weak instrument? 2) What is an invalid instrument?
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