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Ann’s preferences are represented by a utility function UA(x). Suppose one were to (colloquially) say that Carol has more “sensitive preferences” than Ann: her utility function UC (x) satisfies UC (x) = 2UA(x). Prove that for every choice set, Ann and Carol make identical choices.
assume which the benefit to the villagers of each additional cow grazing on the commons declines as more cows graze, since each additional cow has less grass to eat than the previous one.
An economy needs 400 bn. Spending to close the recessionary gap, multiplier is 4; what should be the increase in spending on the part of the of the government?
Consider again the 2 countries in the previous question. Suppose the U.S. and Mexico do not trade goods at all, but workers can move freely between them. Will free movement of labor have a similar effect on real wages as free trade of goods? Explain.
Explain the tools used to pursue expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate? b) Explain what is meant by a built-in stabilizer and give two examples.
If the marginal revenue from a product is $15 and the price elasticity of demand is ? what is the price of the product?
Due to the recent events, Greece is to pay a debt to Troika. The issue is, that Greek Finance Misiter is trying to re-negotiate the terms of debt payment, with the help of his knowledge in the "Game theory".
The Fed attempts to increase the money supply to stimulate the economy, but plants are operating at 65 percent of their capacities and businesses are pessimistic about the future.
Both antitrust policy and industrial regulation deal with monopoly. Illustrate what distinguishes two approaches. Explain how does government decide to use one form of regulation rather than.
verify the excess burden can also be calculated using this formula.
Which former Soviet republic currently a member of the Commonwealth of Independent States (CIS) has been the most economically successful in making this transition.
The market value of a bond will always approach its par value as its maturity date approaches, provided the bond's required return remains constant.
find the expected frequencies if the die is fair. calculate the chi-squared statistics. find the 5% critical value
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