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1. According to Matchek, the phrase "the best of all possible worlds" applies to a state of equilibrium, which doesn't exist in the world as we know it.
True or False
2. According to Matchek, one of the reasons people tend to take the role of entrepreneurs for granted is due to the fact that we do not often question the origin of the many goods and services we use each day.
The college has annual fixed costs of $10 million, and the variable cost for each additional student is $5,000. To continue operating, the college must receive payments equal to its total costs.
How does Microsoft's incentive to engage in second-degree price discrimination in the market for applications affect its incentives to raise the price of Windows?
You have two sets of estimates of national account numbers for a closed economy for next year. In the first set, government expenditures will be $30 billion, transfer payments will be $10 billion, and taxes will be $45 billion. Based on these numbers..
Examine how the Federal Reserve controls the money supply. In a paper, formulate how the independence of the Federal Reserve should or should not be modified in any way.
Assume that a country’s real growth is 2 percent per year, while its real deficit is rising 5 percent a year. Can the country continue to afford such deficits indefinitely?
Warren Buffett’s company went public in 1965. The public offering price walls $18 per share. The stock was traded at $92,400 on April 10, 2009, and the market value of the firm was $97.8 billion. What is the firm’s average annual compound growth rate..
A competitive firm has the production function y = min{ √ L, √ K}, where L is labor and K is capital. Suppose that in the short run this firm must use 16 units of capital but can vary its amount of labor freely.
For each group identified in bold type below, use the labor-leisure choice model to illustrate graphically and then explain the change in the quantity of leisure desired. Be sure to explain how the group’s labor force participation rate is affected. ..
Consider an economy in which people wish to hold bank checking deposits worth a total of 5 million goods and currency worth 2 million goods in every period. In addition there is a stock of unintermediated capital worth 10 million goods. Find the reve..
the bursting of the housing bubble and the panic of 2008 caused both businesses and households to cut back on their
If all n identical firms in a market belong to a cartel, how much total output will be produced relative to the monopoly output, and how much will each firm produce?Suppose the graph on the next page depicts the demand for football tic k ets at Gr..
Consider an economy in which its residents spend 90% of each additional dollar they earn and the government increases its spending by $400. Calculate the total effect on output (or aggregate demand) The government reduces its spending by $4000 in an ..
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