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Assume that you have private information that the Fed will buy bonds next week. To maximize capital gains or to minimize capital losses, should you buy bonds or sell bonds now? Assume that you can afford to buy bonds, and you also have bonds to sell
How might increasing the level of government transfers reduce the size of the economic pie? Check all that apply. Greater transfer activity diverts productive resources into rent-seeking activity. Higher taxes may be necessary to finance increased tr..
Given two downward-sloping, linear demand curves, with one showing consumption to be 50 percent greater than the other demand curve at each price, is the demand elasticity the same at any given price?
An investment, which is worth 22,000 dollars and has an expected return of 15.75 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow..
Opportunity cost is defined:
Consider the Tragedy of the Commons game with two shepherds, A and B. LetsA and sB denote the number of sheep each shepherd grazes on the common pasture. Assume the benefit per sheep equals 300−sA −sB. Compute the flock sizes and shepherds’ total ben..
A small tie shop finds that at a sales level of x ties per day its marginal profit is MP(x) dollars per tie, where MP(x) = 1.35+0.04x-0.0021x2. Also, the shop will lose $65 per day at a sales level of x- 0. Find the profit from operation the shop at ..
We normally think of currency and banking risks as being something confined to third-world or developing countries. But events in the past few years such as the Euro crisis or the financial crisis in the United States have shown that not even the wea..
Homer's boat manufacturing has a monopoly on boat sales in the region. Homer's marginal cost of the 8th boat produced is $1,200. He produces only eight boats and can sell all eight boats for $1,500. The elasticity of demand at this price is -2. Is..
Elucidate how can you derive an equation describing labor demand in this economy as a function of the real wage also capital stock.
Russian farmers, again, have a poor crop. Their government has announced that they will not ban exports. Discuss the impact on domestic and world prices, consumers and producers the effects of the Russian government's decision.
Choose a specific product that you use on a daily basis (such as food items, toiletries, or your car). Who are you (demographics, psychographics, etc.)? What do you do with the product (consumption, storage, disposal, etc.)? Where do you purchase the..
Remain in mind about your paper that is going to be read by people without previous knowledge of game theory.
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