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Suppose we draw an indifference map diagram to explore the hours of work a worker will choose to do. Which of the following will not apply to this diagram?
a) The indifference curves slope downwards to the right because both income and leisure are desirable.
b) The curves get flatter to the right because both income and leisure have diminishing marginal utility.
c) The indifference curves furthest from the original represent the highest total utility.
d) An increase in the wage rate shifts the earnings leisure line, with the new line being parallel to the initial line.
a) What would we expect this to do to aggregate demand? What component of AD (C, I, etc.) would the tax rebate impact most directly? Explain why. b) Is this an example of the use of fiscal policy or monetary policy?
Unemployment is low and inflation is rising, but slowly. Gross Domestic Product is also rising. The Federal Reserve may increase the reserve requirement at this point in order to
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees In many smaller cities all McDonald's outlets are owned by the same franchisee.
1. explain the relationship between a firms short-run production function and its short-run cost function. focus on the
Illustrate what extent are these definitions of economics and happiness similar. To what extent are they different.
consider the equation y cy-t i ga. calculate the total differential for this equation.b. holding i and g constant
Do protectionist policies benefit producers, consumers, workers, or the government? Explain. b) Explain how the "Buy American" theme hurts Americans.
Using the aggregate demand and supply model, draw an economy in a boom with equilibrium national income above full employment GDP.
Why would you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than.
Under the expectations hypothesis, if long-term yields are higher than short term yields, does this mean that future long term rates should go up, down, or stay the same?
A small-volume automaker limits the number of franchised dealers in the U.S. and gives them exclusive territories. There are also non-dealers who have no official connection with the manufacturer.
To what extent would increased government involvement with regard to fuel efficiency affect the behavior of manufacturers? To what extent would increased government involvement with regard to safety affect the behavior of manufacturers? Does it seem ..
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