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Q. Assume the marginal utility of good A is 4 utils and it's price is $2 and the marginal utility of good B is 6 utils and it's price is $1. Is the individual consumer maximizing (total) utility if she spends a total of $3 buying one unit of each good? If not, how can more utility be obtained?
Q. Illustrate what is the shape of an indifference curve if there are economic bads on both axies? e.g. pollution and garbage?
Illustrate what are equations for IS and LM curves. Illustrate What is equilibrium level of income and interest rate.
Illustrate what is the probability that this worker is a college graduate. A non-college graduate. Are educational achievement and employment states independent
Can you think of circumstances in which each industry would exhibit the same capital-labor ratio in both countries.
Consider an economy in which taxes, planned investment, government spending on goods also services also net exports are autonomous
Rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve.
Chrysler announced a new incentive program on its minivans that included subsidized interest rates also cash allowances.
A car manufacturer claims that its vehicles average at least 25 miles per gallon.
Illustrate what will be the consumer consumption of gasoline now and how much will be the amount of rebate.
Illustrate what is the equilibrium to this game.
movements along the consumption function while changes in wealth lead to a shift of the consumption function.
Presumptuous the demand curves were linear or graphically demonstrate your reasoning.
The cost of running the government program ( assuming no storage costs). Illustrate what is the total price of the program to consumers.
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