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Joe Cool went to a baseball game and got very hungry for a hotdog. While it is true that the ballpark sells soda and hotdogs separately, Joe Cool never has one without having one of the other. His indifference curve map between these two goods is most likely
A. made up of linear indifference curves.
B. made up of indifference curves that bow “out” away from the origin.
C. made up of indifference curves that are positively sloped.
D. made up of indifferences curves that cross each other.
E. made up of “L” shaped indifference curves.
According to the Keynesian model, equal increases in government spending and taxes will result in which of the following?
If interest rates could be deducted from income, would an investor change his/her decision based on question 1.
Define the dead weight loss of a unit excise tax on a particular good. Explain what it measures. Draw a graph of possible supply and demand curves for a particular good for which the deadweight loss (DWL) from a unit excise tax is about half as big a..
Arrows up or down. In the application on consumer loans in South Africa, the loan uptake rate _________ as the interest rate decreased and _________ when the model on the offer was switched from a man to a woman. Advertising for Loans. Consider the n..
Illustrate what should be the production level if fixed costs rose to $50,000 per month. Explain.
In Krugman and Obstfeld's International Economics, 8e, Chapter 16, an involved argument is given showing that a permanent fiscal expansion will not affect output even in the short run. It seems to me that this is a saddle point stability argument in ..
Many police officer positions being advertised today require the applicant to have a college degree even though the tasks of a police officer rarely call upon college course material. Why don’t police departments increase their applicant pool by drop..
q1. in the absence of a price floor the maximum price that a few of the consumers are willing to pay is 0.20 for a
Trade liberalization leads to a "race to the bottom" in environmental standards. Make the argument and counter-argument, present the following data;
The primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are: the coefficient of variation is easier to compute
Consider an investor with preferences given by the utility function U = E(r) – 0.5Aσ2 and there are two portfolios with the following characteristics: Suppose that the investor has a level of risk aversion of A = 2. Which portfolio should the investo..
Gains from trade will result if a country specializes.
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