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Steve was spending all of his income by purchasing 12 units of gasoline and 36 unit of potato chips. The price of gasoline increased from $32 to $94. The price of potato chips remained the same at $23. How much would Steve's income have to rise so that he can still exactly afford 12 units of gasoline and 36 units of potato chips? (remember consumer income is always exhausted). (Hint: use the budget equation with the prices and quantities given to you in the problem).
Two identical small poor countries, Country A and Country B, have a well educated population but small capital stock. Initially they both have closed economies. Country B opens up for the world and can be observed as a small open economy. In what cou..
What is means tested, in-kind benefits, and negative income tax? Give some examples of government programs that are means tested and programs offering in-kind benefit.
Using appropriate models or theories, explain the economic intuition (logic) behind the following events. An increase in money supply leads to a fall in short-run interest rate. An increase in real income leads to a rise In short-run Interest rate
After graduating from college, you receive job offers from five different accounting firms. All job offers have a different compensation package. Is it irrational for you to accept an offer that doesn't provide the highest level of monetary compensat..
Per the Kyoto Protocol, European countries have targeted a reduction of CO2 emissions. There are two main types of coal-fire plants in the EU: one type is designed to be able to be retrofitted with abatement equipment at a lower cost than the other t..
q1. as the ending of month approaches you realize that you perhaps will not be able to pay the next months rent.
Assignment on The Net Exports Effect
What is the efficient number of crabbers - suppose the government wished to promote efficiency in crabbing by requiring crabbers to purchase licenses. How much should they charge (per day) for a license?
1. you are a manager for a regional health system. using an estimate of the price elasticity of demand of -0.25 how
What is the average time that catalog customers must wait before their calls are transferred to the order clerk? What is the average number of callers waiting to place an order?
A change in the real one supply can result either from a change in the nominal money supply through Federal Reserve policy (holding the price level conatant) or from a change in the price level (holding the nominal only supply constant). the change i..
If he continued to work exactly as many hours as he did before the wage increase, how much more money would he have each day to spend on consumption?
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