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Timmy currently has $100 to last him a whole weekend. Let T represent his consumption on Saturday, and N represent his consumption on Sunday. His utility function is given by U(T,N)=min(T,3*N). How much of his $100 will Timmy choose to spend on Sunday?
According to the News on page 159, (a) By what percent did GDP decline (b) How much output was lost in the $14 trillion economy (c) How much income did this represent for each of the 300 million U.S. citizens
Many retirement funds charge and administrative fee equal to 0.25% on managed assets. Suppose that Alexx and Spenser each invest $5,000 in the same stock this year. Alexx invests directly and earns 5% a year. Spenser uses a retirement fund and ear..
The marginal cost (which equals the average variable cost) of serving an additional patron, either senior or everyone else, is equal to $4. Fixed costs are equal to $1000.Ps = 80 - Qs Pe = 100 - 2Qe Show that MRe = MRs = MC
Assume that a hypothetical economy with an MPC of .7 is experiencing severe recession. By how much would government spending have to increase to shift the aggregate demand curve rightward by $30 billion
What is the breakeven level of hour of work under the program I have gotten help on the first part of the question and found that the break even level of earnings was $140 and he would work for 20 hours/week.The other part
Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equip..
Calculate the value of each of the following, before the tax and after the tax, to complete the table that follows: 1. The Equilibrium quantity produced Equilibrium Quantity (Millions of units) Before tax? After tax? 2. The equilibrium price consume..
One year ago, you bought a bond for $10,000. You received interest of $400 at the end of the year, as well as your $10,000 principal. If the inflation rate over the last year was five percent, calculate the real return.
Determine algebraically the profit-maximizing outputs for the production and marketing divisions of the firm and the optimal transfer price for the intermediate product and the price of the final product.
Assume the demand function for basketballs is given by QD=150-3P+0.1i where P=the price of basketballs and I=average income of consumers. Also, assume the supply of basketballs is given by QS=2P. If the market for basketballs is perfectly competit..
Find the equilibrium level of income (Y*). Construct an aggregate expenditures model showing this information. What happens to RGDP if government spending decreases by $5 billion? Provide specific numbers. Suppose this economy opens up to trade. If..
A spike in the unemployment rate-the biggest in more than 2 decades-raised new concerns Friday that a weak labor outlook, high oil prices and continuing woes in the housing & credit markets are leading the US economy in to a painful recession.
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