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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?
Show how one can derive the change in market value of equity as a function of adjusted duration gap, asset size and interest rate shock.
You have been assigned the task of creating a multiple regression equation of at least three variables that explains Microsoft's annual sales. Consider using a time series of data of at least 10 years.
A firm is making production plans for upcoming quarter, but the manager doesn't know what the price of the product will be next month. She thinks there is a 30 percent chance price will be $500 and a 70 percent chance price will be $750.
Describe what is meant by the Gold Standard and what were the problems with the gold standard?
An order written by the exporter instructing the importer, or their agent, to pay a specified amount of money at a specified time is a: Note Payable,Draft;Promissory Note;Check.
)Now suppose that some of President's close political advisers are urging him to adjust taxes but not spending. Assuming the same initial level of G (=500), how would you advise the administration to adjust taxes to reach potential GDP?
Apply the formula for the area of a triangle (Area= 1/2 x Base x Height ). What is the dollar value of the total surplus ( producer surplus plus consumer surplus) when the allocatively efficent output level is produced
Describe a situation where prices have been held out of equilibrium due to government intervention in the market-the obvious ones discussed in the text are rent control and agricultural subsidies. You may use a specific example of one of these, or..
Determine the long-run marginal cost function for electricity generation and determine the short-run average variable cost and marginal cost at the output level in Part (d)
You can use monetary and fiscal policies to affect aggregate demand but you cannot affect aggregate supply in the short run. How would you respond to the following scenarios?1. A surprise increase in investment spending 2. Catastrophic floods that ..
The federal Insurance Contributions Act tax is a payroll tax that finances Social Security and MEdicare. By law, employees each contribute 7.65 percent of the workers wages toward the events.
A $2.50 decrease in the price of the $17 salmon entrée increased sales from 40 to 75 meals per week. Which entree should he choose to put on sale?
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