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Indifference theory can explain all rational choices and behavior..Try the theoryout on this situation. Suppose the only consideration for couples to have a bby or not was money. If a baby costs $8,000 a year, the price of "All other goods" is $1, and the couple has an annual income of $40,000, how would I construct a budget line for having a family?
People enjoy outdoor holiday lighting displays, and would be willing to pay to see these displays, but can't be made to pay. Because those who put up lights are unable to charge others to view them, they don't put up as many lights as people would..
Describe the method of contingent valuation for measuring the economic impact of crime. What are the advantages and disadvantages of this method relative to trying to measure the cost of crime directly
The Value of the Marginal Product of Labor Equation is an important equation.
If the government had the option to either make changes to the tax rates or vary government spending to combat a recession that is already in progress, which of these two fiscal policies do you think would have a greater time lag to see its effect..
Suppose that there is a cultural shift in America emphasizing the importance of saving money as opposed to current consumption. a.) Illustrate the impact on the interest rate in the market for loanable funds. What direction does the interest ra..
Describe the difference between movement along the demand curve and a shift in demand. Provide an example to help the class understand the difference between the two.
Who are maximizing their rational choice, the Japanese or the Americans and which of the three forms would Adam Smith agree is the best choice?
Analyze how inflation could occur in a society that relies exclusively on barter versus money. Speculate what form inflation would take and how you would recognize it. Provide support for your response.
An increase in fiscal deficit spending financed by borrowing will not affect the national debt but decrease interest rates. Internal ownership of the debt refers to the portion of the national debt owned by government agencies.
Three months ago you purchased, at par, a $100,000 bond with a stated interest rate of 5%. Today, the Federal Reserve announced that it is reducing the discount rate by 0.5%.
Give two conditions that are important to the efficient market theory. List one implication of the efficient market theory.
Identify what problem this economy is facing and describe two specific policies the Federal Government might follow assuming the MPC in this economy is 0.67. Provide specific numbers when describing the outcomes of the two different policies and e..
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