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A person has a choice between only the following bundles: (1,1), (2,2) (3,3) (1,2) (1,3) (3,2) (3,1) (2,1) (2,3). The person’s preferences are that they prefer the bundle that has a bigger number when the x coordinate is divided by the y coordinate. They are indifferent to bundles that get the same number for this calculation.
a) Show these preferences are consistent and transitive
b) Show these preferences violate non- satiation.
Our recent recession seems to demonstrate again that expenditures and incomes depend on each other. If markets do not self adjust, how can a decline in spending lead to a negative process that ruins an economy? (Consider referencing the "Keynesian Cr..
Calculate the consumer surplus, producer surplus, government revenue and deadweight loss for taxes of $4, $8, $12 and $16 per unit sold. What tax maximizes government revenue?
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Briefly state basic characteristics of pure competition, pure monopoly, monopolistic competition and oligopoly. Under which of se market classifications does each of following most accurately fit.
There is no uncertainty about the future. The consumer needs to save an amount this year that will allow her.
q1. illustrate what are the key determinants of spectrum healthcare resources fixed cost and variable cost in
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Why does the loss in economic surplus directly experienced by the participants in the marketplace for s good
Suppose that the US government determines that cigarette smoking creates social cost not reflected in the current market price an equilibrium quantity of cigarettes.
After rallying for the most of February to reach record highs late in the month, the S&P 500 stock indez fell sharply on Friday March 6 following news that the economy added 295,000 jobs, bringing the unemployment rate down to 5.5%. An analyst has be..
Presently the bond is priced to yield a return of 5% per year. Illustrate what is the bond's current market price.
Explain your policy combination in details (This is an open ended question) - Which of the policies is/are a monetary? - Which of the policies is/are fiscal? - What are the differences between monetary policies and fiscal policies?
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