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What constraints does the consumer who follows Biblical principles have on his consumption that a non-Bible believing consumer would not have? How do these Biblical constraints affect the shape of the consumer’s indifference curve and budget line?
What is the difference between a profit and a rent? If a firm is interested in maximizing profits, why would it stay in an industry if profits are zero?
Assume this economy is closed to trade, and compute consumption, government purchases, national saving, and investment.
Explain how will the bank respond to the withdrawal. Suppose that the bank responds to insufficient reserves by reducing the amount of deposits it holds until its level of reserves satisfies its required reserve ratio.
The town council of the suburb of Happy Valley has concluded that to breakeven from a fiscal point of view, a new housing unit must have a taxable value (v*) of $250,000. Land in Happy Valley currently sells for $40,000 an acre ( r). Using the rule o..
Metro claims that at the time of its loan it was unaware of HFCs interest. Between these parties, who has priority to the collateral? Discuss your answer.
The U.S. was on a “gold standard” from 1879 to 1933. Which of the following was a a major disadvantage of being on the gold standard from an economic point of view? the fixed exchange rate made international trade and investment easier. the price of ..
Illustrate what are the factors that affect the supply and demand of the good or service. Who benefits more from a transaction of the good or service, the buyer or the seller. Generally speaking, why do people enter into trade.
The federal funds rate is currently held in the 0-025% (zero-bound) range. Suppose the Fed suddenly announces that it will raise the target federal funds rate to 1% over the next 6 weeks. Given these effects and current macroeconomic conditions, wo..
Is the natural rate of unemployment fixed? Why or why not? How are full employment and the natural rate of unemployment related?
If the value of M increased from 50,000 to 60,000 also nothing else changed which would equilibrium price increase or decrease. Would the equilibrium quantity increase or decrease.
What is the short-run equilibrium price. What is the short-run equilibrium market quantity.
Smith suggests that division of labor leads to increased production through three different avenues. Explain. “It is the great multiplication of the production of all the different arts in consequence of the division of labour, which occasions in a w..
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