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What effect is working when the price of a good falls and consumers tend to buy it instead of other goods?
a) The income effect.
b) The diminishing marginal utility effect.
c) The substitution effect.
d) The ceteris paribus effect
Considering the size of our national defense budget, should we be spending more on military technology? What is your opinion?
Drowns indifference curve for consumption and hours of work. (Hint: in class we discussed indifference curves for consumption and hours of leisure
Associate a current event article which relates to government regulations or antitrust activities.
Select one of the system development approaches (structured, information, engineering, and object-oriented) and give an example of a business process or problem that would use that approach.
Durable goods pricing. Consider the example discussed in class. The monopoly sells two units of goods over two periods. The costs are zero. Consumer A has a valuation of 15 and Consumer B has a valuation of 10. Suppose the discount rate is f=.8.
If the United States lost hundreds of thousands of jobs, how is it that NAFTA was a best decision for the US also probably not for Mexico and Canada
What would you give an example of a microeconomic decision you've made at work or home? What factors contributed to making that decision.
What is outsourcing? Give examples of outsourcing in the manufacturing and services industries. Explain the examples. What is the difference between outsourcing and off shoring?
Maggie's utility function is and her income is $5000. Then her MRS at generic bundle (x1, x2) is 50-0.25x1. Commodity 2 is a composite good, and hence its price is unity.
Suppose that there are 1,000 hot-pretzel stands operating in Toronto.Each stand has the usual U-shaped average total cost curve.
Suppose you have just been appointed to the Federal Open Market Committee of the Federal Reserve. Your advisors report that the economy is growing slowly. Real GDP is at an annual growth rate of 0.01%. Unemployment is rising rapidly
Does the Central Bank control all determinants of change in the monetary base?
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