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Susan switches from going to Speedy Lube for an oil change to changing oil in her own car herself. Which of the following is correct? The value of changing the oil is A) included in the GDP whether Susan changes the oil or pays Speedy Lube to do it B) included in the GDP whether Susan pays Speedy Lube to change it but not to change it herself C) included in the GDP if Susan changes it herself, but not if she pays Speedy Lube to change it D) not included in the GDP if neither Susan or Speedy Lube changes the oil
Gene has the following utility function: U = XY + 2Y, the Px = $4, the Py = $1 and I=$6. What is the slope of the budget constraint? Find Gene’s MRSx,y. Is the MRSx,y increasing, decreasing, or constant with respect to X?
Annual savings due to energy efficiency thermo well have a most likely value of $30,000. The most optimistic value is $40,000 with a probability of 0.2 and a most pessimistic value of $20,000 at 0.3. The First Cost is $150,000, the interest rate 10%,..
Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 5%, the growth rate of the velocity of money is 4% and that the real economic growth rate i..
There is this so called movement that claims the "science is settled". The climate is changing and if you don't believe it your are a "denier" . What I would like you to discuss is the this point the "science is settled" claim. When in human history ..
Clear Water Company has a down-hole well auger that was purchased 3 years ago for $30,000. It has been depreciated over the 3 years as MACRS-GDS 5-year property. It has an estimated remaining life of 7 years. O&M costs are $13,000 per year. Using an ..
Suppose a decrease in supply raises the price from 4.00 to 5.50 and decreases quantity demanded from 2,000 to 1,500. Using midpoint method find elasticity of demand.
Assume that Janet Yellen (chair of the US Fed Reserve) decides to reduce the US money supply (i.e., contractionary monetary policy). Using the concept of money market equilibrium, explain what will happen to interest rates and prices in the U.S. in t..
What could the FED ( Federal reserve system) do in 2002-2003 in order to bring the economy back to full-employment ? What did the FED actually do ? Explain in detail
determines the net weight of each, and computes the mean of these 16 weights with the sample standard deviation, s= 0.25.
Using aggregate supply and aggregate demand diagrams, illustrate each of the following situations: When will expansionary monetary policy reduce unemployment, but have little effect on inflation? When will contractionary monetary policy reduce inflat..
Identify a particular industry (non-government) that meets the criteria for Pure Competition or Monopoly. Explain clearly why you think the industry is in Pure Competition or is a Monopoly and evaluate it from perspectives of efficiency and equity. I..
Appledale Dairy is considering upgrading an old ice-cream maker. Upgrading is available at two levels: moderate and extensive. Moderate upgrading costs $6500 now and yields annual savings of $3300 in the first year, $3000 in the second year, $2700 in..
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