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a) Using an indifference curve mapping, derive a compensated demand curve.
b) When considering the welfare implications of a price change, why should an economist technically measure consumer surplus as the area under the compensating demand curve, rather than the Marshallian, or observed demand curve?
A group of students is working on a research project based on the topic of ethical animal care. They have decided that the first step is to clarify the problem they want to address. Which of the following is a qeustion of judgment that clarifies the ..
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 6 percent. This firm is earning $5.50 on every $50 invested by its founders. What is its percentage rate of return? What will be the rat..
Think of another good that you have purchased recently (or you could continue with the good you selected in TDA I). Be specific (e.g. is it breakfast cereal in general or Cheerios cereal specifically). If the price of this item increases, how would t..
China's entry into the World Trade Organization (WTO) in 2001 created more competition between local and foreign firms, and also provided China greater access to the market for exports. What impact do you think the import quota reduction likely had o..
Explain the following concepts that we learned in our computer class. Clarity of the answer is highly recommended. 1. What is the difference between bit rate and baud rate.? 2. What is the difference between routable and non- routable protocols? 3. W..
Wal Mart does carry goods in which are perfect competitive. How do we know this? Wal Mart introduced their own brand to compete with the branded good and of course mark their 'GREAT VALUE' brand cheaper than their competitors. A good thing? I would s..
Describe the supply and demand shifts that are occuring. What would happen to the demand curve if the major taxi companies lowered their rates.
A man borrows money from bank. He receives the money in 5 annual installments, taking X each time. He repays the loan with 20 annual payments, the first one equal to 100 and the payments increasing by 100 each year. If the first payment is due one ye..
Some reject fiscal stimulus measures in all policy forms. Explain what the various limitations are to a successful fiscal stimulus. Be sure to consider the damaging activities and decisions of (a) private corporations, (b) commercial banks, and (c) w..
In 2011, First National Bank received 3,200 inquiries due to its monthly advertisement in the local newspaper describing its 30-month CD accounts. In the same period, the bank’s monthly ads in a regional business magazine generated 1,000 inquiries. A..
Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is su..
The U.S. has historically low interest rates at present. How would you predict these would impact the value of the dollar on foreign exchange markets? How, in turn, would these low interest rates impact our balance of trade?
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