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1. What is the opportunity cost of producing a capital good such a new road?
2. In economic terminology, what is the meaning of investment?
3. How does an individual know whether or not an investment in education is worthwhile?
4. Define opportunity cost. Given the definition of opportunity cost, explain what is meant by the statement "There is not such thing as a free lunch."
5. Kathy and Amy paint pictures and do caricatures to sell to tourists. In one day, Kathy can either paint two pictures or do four caricatures. In one day, Amy can either paint three pictures or do three caricatures. For both Kathy and Amy, what is the opportunity cost of painting one picture? Who has the comparative advantage in painting pictures and who has the comparative advantage in doing caricatures? How might they be able to increase their total output?
6. Use a graph and comment on the following statement: "If an economy is producing inside its production possibilities frontier, it could possibly produce more of one good without giving up any of the other."
Is there an externality? If so, describe it, including references to whether it is positive or negative, and whether it is a consumption or production externality. If there is an externality, does it seem likely that private markets will arise tha..
Elucidate each of the folling statements using supply and demand diagrams. When a cold snap hits Florida, the price of orange juice rises in super marlets through out the country.
Explain the antitrust laws in the US stricter also more comprehensive compared to those of other industrialized country.
Describe the benefits and costs of such a sweeping trade agreement. Consider the various countries involved (you do not have to look at all of them!) and what it means for first and third world nations to join in such an agreement.
You are the adviser to a Benevolent Social Planner. GDP is falling also the economy is in a recession.
Suppose the Value of the French Franc in terms of the dollar is 40 on October 12 and 45 on October 17. By how much has the Franc appreciated or depreciated against the dollar?
Benefit-cost ratio analysis and an 8% MARR, determine which alternative, if any, should be selected.
Define interest rate risk. Explain the two types of interest rate risk. How can an investor with a given holding period use duration to reduce interest rate risk?
If the needs return on the stock is 13 percent, what is the present share price.
A movement along the demand curve to the left may be caused by:
Using a supply and demand graph and assuming competitive markets, show and explain the effect of equilibrium price and quantity of the following A) a technological change that reduces the cost of producing x-rays on the market for physician clinic ..
Elucidate why this strategy may, in fact, be rational. Also, identify at least two other strategies that might permit Argyle to earn higher profits.
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