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Don't let high gas prices stall your summer plans With gasoline at $4 a gallon, up 25% since 2010, some people are reassessing their travel plans and many will stay fewer nights in roadside hotels.
Draw a preference map to illustrate a holiday traveler's preferences, a budget line for gasoline and nights in roadside hotels in 2010, and identify the best affordable point. On your graph, show the best affordable point in 2011.
What do you understand by a ‘negative externality'? Consider the impacts of a negative externality on resource allocation and the policies which might be used to ‘correct' it.
Suppose changes in the age structure of the workforce meant that full employment in 2002 was actually associated with an unemployment rate of 4.5 percent rather than the 5 percent figure used earlier. Recalculate the output costs of the recession...
A furniture manufacturer is considering moving its production to India. Its production function is: Q = 1.52L.6K.4. In Canada, w = $24 & r = $4. In India, w = $4 & r = $24. a. What is the K/L ratio in Canada
Is there either a recessionary output gap (negative GDP gap) or an inflationary output gap (positive GDP gap) at the equilibrium interest rate and, if either, what is the amount There is a recessionary output OR gap inflationary output gap of $.
Can overall money demand be legitimately separated into three additive components according to Keynes's motives for holding money? If not, what is the justification for doing so?
Consider the model of demand deposits described in class. Suppose N=900,y=10,v^k-?=0.9,and X=1.2. Let each person have a two-thirds chance of being a type 1 and a one-third chance of being a type 2.v^k is price of capital
There are 20 million households in Country X and 4 million of them are below the poverty line. What is the poverty rate for Country X?
Consider the following information about the market for Bayer Heroin-Hydrochloride: P = 10.525 - 0.1QD P= 3.25+1.4QS a. What is the equilibrium market price for heroin b. What quantity of heroin is sold at market price What quantity is demanded
Design a simple feedback system that controls both temperatures, and determine how the fluid-temperature response time compares with what is achieved in the text using only wall-temperature control.
Investigate analytically the likely direction of the bias in the slope coefficient in the OLS regression, and check whether a comparison of the OLS and IV estimates confirms your analysis.
suppose z follows a standard normal distribution i.e. a normal distribution with mean 0 and variance 1.a. what is the
Compare your answers to parts (a) and (b), and consider the optimal portfolio choices. Does diversification eliminate consumption risk in each case? Explain.
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