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Suppose you have an island with ten grades of land of increasing productivity 1-10. There is no rent on the least productive land, with an output of 4-bushels per period. In each period of production, all farmers must buy a new plow, which costs two bushels. This plow doubles production. What effect will this technology increase have on land rent and wages?
Briefly discuss the origin and motivations of the Luddites of the early 19th century. Do you think the Luddites were successful in their endeavors? What could they have done to better influence the role this technology would have in their lives? Are ..
An investment bank is planning to interview 10 job candidates, randomly chosen from the applicant pool. Individuals differ in their abilities to put together deals and perform other functions that are part of an investment banker’s job.
Your state is considering purchasing a new snow plow of the options shown below. The state uses an MARR of 10%. What is the Rate of Return for each option? What is the Rate of Return of the additional investment for the more expensive option? Which s..
Suppose there are two goods, labeled x, y. A consumer has a budget of w = 220. Suppose the following two consumption bundles: (x = 4, y = 10), (x = 6, y = 4) all cost the consumer 220. What’s the price ratio between the two goods? Namely what’s py px..
Calculate the average cycle stock for this item using the order quantity in part a.Assuming there are 12 periods per year, calculate total cost per year.
Assume ESPN introduces a new performance comparison system for NBA players (basketball), i.e. preference relation for ranking players as strictly better, weakly better or indifferent (equally good). ESPN’s new criterion (the preference relation) is d..
If the demand increases for a product like gasoline and there is no change in the supply of gasoline at the same time, then using SUPPLY and DEMAND CURVES, the new equilibrium price might go up or stay the same, or be lowered.
School tries to discourage Twinkie consumption by raising the price to $.40, by how much will Matt's mother have to increase his lunch allowance to provide him.
Assume that the product depicted below generates external costs in consumption of $3 per unit. What is the market price (market value) of the product? What is the socially optimal output?
Please describe ONE of the three detailed growth theories covered, in detail. (do not do Malthus) For whichever you choose, give the mechanism itself, i.e. how does the model work? What assumptions are implicit in the model?
The decline in cigarette sales was estimated at 8 percent. What does this imply for the elasticity of demand for cigarettes? Explain?
If banks desire to retain excess reserves of 10% of total checking accounts and borrowers hold 10% of their new checking accounts (loans) for liquidity purposes and do not spend that 10%, what will be the maximum impact on the money supply in the for..
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