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Suppose Georgette earns $13 an hour installing transistorized digital chips in electronic calculators. If you were unemployed, would you offer to work for $8 an hour to get the job? Why might a profit-maximizing employer turn down your generous offer?
What are the components of aggregate expenditure. What determines the slope of the aggregate expenditure line.
Your company is interested in analyzing the behavior of interest rates and the models used to predict interest rates in the future. As an initial project in this area, you have been assigned the task of creating a presentation that will show the top ..
Carmen's preferences are such that she is always indifferent between watching two movies or seeing one basketball game. Suppose that Carmen has an income of $90. If a movie costs $10, and a basketball game costs $18, what will Carmen's optimal consum..
Let P be the price of a stock. The investor wants to purchase Q units of this stock. Suppose investor’s equity is E and assume that equity is strictly smaller than the value of the stock investor wants to purchase. As such, the investor receives a lo..
Robert’s New Way Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistically competitive market. What are the profit-maximizing price and output levels? Explain them and calculate algebraic..
How does rational expectations affect our perceptions concerning the speed or rate at which an economy moves back to potential. What does this say about the importance of supply shocks relative to demand shocks? Explain please.
Javier is travelling from his home in New York to Dallas, Texas. While driving through Oklahoma, his brakes fail and he is injured in the ensuing crash. Javier wants to sue the maker of his car, Energy-Auto Inc. Energy's headquarters is in New York. ..
Elucidate how advertising can be employed to allow Tots-R-Us to keep cost above average cost with encouraging entry.
Suppose you are now 66 and can apply to receive Social Security Retirement Benefit starting this year. You would get (inflation adjusted amount of) $10000/year if you apply this year. Alternatively, you could delay applying for SS benefits until 70 w..
Wealth holders around the world reacted to the Greek Debt Crisis by selling European financial assets and buying U.S. financial assets. Explain why their action changed the exchange rate between euros and dollars. Did their action strengthen or weake..
The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.
Let Y represent income and L represent hours of leisure. Mike's utility for income and leisure is U(Y,L) = Y x L so that marginal utility of leisure = Y and the marginal utility of income = L. Total hours available for leisure and work in any given w..
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