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Henry initially consumes the quantity of pens and pencils shown as B in figure 2. After the prices of both goods change, he buys combination A. From figure 2 and these facts, it must be true that . . .
A) Henry prefers A to B.
B) Henry prefers B to A.
C) Henry is indifferent between A and B.
D) Henry considers pens and pencils to be perfect substitutes.
E) Henry preferences cannot be determined from the information given.
Italian energy concern Eni SpA agreed to annually purchase 2 billion cubic meters of LNG from Nigeria LNG Ltd. for resale to the United States. The gas is to be produced at the Bonny facility in Africa and delivered to the Cameron import terminal in ..
Decreasing returns to scale occurs when a firm has to increase all inputs at an increasing rate to maintain a constant rate of increase in its output.
Assume that you were ready to buy a custom tailored dress (or men’s suit) and you are prepared to pay up to $200 for it. Also assume that the tailor is prepared to sell that item of clothing for as little as $100. When you arrive at the tailor shop, ..
Based on your own experiences, extend the list of analogies between the human body and the economy as outlined in this chapter. Then, determine which variables in your list are stocks and which are flows.
If you were the angel investor, what is your certainty equivalent for these two projects? Are you risk-averse, risk-neutral, or risk-lover?
The interest rate generally considered to be the best indicator of day-to-day money market conditions and the one most directly monitored/targeted by the Fed is:
q.think of another good that you have purchased recently or you could continue with the good you selected in tda i. be
Despite this finding, the government mandates that new cars have air bags, rather than taxing their use. Is this policy a contradiction.
Which of the following is an example of an automatic stabilizer? When the economy goes into a recession,
If the marginal product of capital is twice the marginal product of labor and the price of a unit of labor is $4, illustrate what must be the price of a unit of capital.
Describe how McDonald's and Wal-Mart elucidate changes in the macroenvironment affect individual firms and industries through the microeconomic factors of demand.
we haven't been able to say much on theoretical side about private information combined with complementarities.
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