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Local Currencies
About 30 U.S localities circulate their own currency with names like "Ithaca Hours" and Dillo Hours." Doing so is perfectly legal (although by law they are subject to a 10 percent federal tax, which currently the government is not collecting). These currencies are used as payment for rent, wages, goods, and so on. Are these currencies money? Explain.
Describe a moral hazard problem your company is facing. What is the source of the asymmetric information? Suppose that every driver faces a 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,00..
make comparision between the situation after both of these changes have happened with the situation before any of these changes have happened.
Illustrate what do you think would be the effect of increases/decreases in the dollar's exchange value on the firm's profitability.
Elucidate marginal utility explains a lot about human behaviour.
Describe your understanding of what makes a cost or factor relevant to economic reasoning.
All firms in a Cournot monopolistically competitive industry have the same cost function C (q)= 25 + 10q. Compute the equilibrium price, total output, firm output and number of firms in the industry.
Illustrate what phase of the business cycle is the United States currently in. Describe in detail. What is the latest GDP.
In light of the theory of comparative pros are any restrictions on free international trade advantageous
Provide high domestic interest rates, what is the economic outlook for these Asian countries in the next few years.
Illustrate what impact could this have on the level of production and therefore the unemployment rate.
Illustrate what does empirical evidence on the U.S. experience with the Earned Income Tax Credit predict will be the effect of the new policy.
Is the price system a "just" or "fair" way to allocate products: What about medical Services-What are substitution and income effects related to the Law of Demand?
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