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1. Give two personal examples where you made a decision based on sunk costs. What would an economist have done in those situations? Explain.
2. Explain the ideas of faulty framing and cognitive dissonance in your own words.
A monopoly firm is free to charge any price it wishes. What constrains its choice of a price?
Which of the following are benefits of international trade? Which ones are correct?
Perfect competition is a market in which there are many firms, each selling an identical product; many buyers; no barriers to the entry of new firms into the industry; no advantage to established firms; and buyers and sellers are well informed about ..
Suppose X - M = net exports; T - G = government sector balance; and S - I = private sector balance. What relationship exists among these variables?
q1. a what output will maximize profit? what is this profit?b will output increase if the price rises to 4.50 to 5.25?
Let P be the price of a stock. The investor wants to purchase Q units of this stock. Suppose investor’s equity is E and assume that equity is strictly smaller than the value of the stock investor wants to purchase. As such, the investor receives a lo..
Which of the following is likely to contradict Samuel Huntington's idea that Mexican migrants to the US may not have an "Americano dream?"
Your buddy Gabe owns a sports restaurant/bar in St. Louis. On a recent visit, Gabe shared the following information on his annual revenue and costs: Assume that Gabe has a standing offer of $70,000 to manage another bar in St. Louis. Calculate Gabe’s..
An eccentric scientist invents a very useful gadget and makes huge profits. Unfortunately, he is so preoccupied with his newly found fame and fortune that he forgot to secure a patent for his special product. What can be expected to happen to the sup..
Every economy, as well as the medical care sector, must decide the following: what should be produced, how it should be produced, how it should be distributed, and how to allow growth and innovation. With respect to the medical care sector, how are t..
Explain how do you run an oligopoly to make the largest possible profit. The oligopolistic producer of this vehicle failed to heed market signals. It failed. Can you name the company.
q1. the sales tax rate applied to all purchases within a state was 0.04 4 percent throughout 2006 however increased to
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