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1. The total market value of production in an economy must equal total:
a. profits.
b. revenues from all transactions.
c. consumption.
d. spending on final goods and services.
2. Participants in our economy include:
a. Business firms and consumers but not foreigners.
b. Consumers only.
c. Consumers, business firms, governments and foreigners.
d. Foreigners but not business firms.
Explain how the strength of the economy as a whole could affect the marginal benefits and the marginal costs associated with a decision to purchase a home.
Alice has 10lbs of cheese and 12 bottles of wine while bill has 6lbs of cheese and 8 bottles of wine. Is this an efficient allocation? If no find a Preto superior allocation. Indicate the contract curve.
q. consider a market for an electronic component used in airport radar systems. two firms hold a patent on the
Mars Inc. manufacturers M&Ms the milk chocolate comes in a variety of colors : blue, brown, green, orange, red, and yellow. the overall proportions for the colors are 0.24 blue, 0.13 brown, 0.20 green, 0.16 orange, 0.13 red and 0.14 yellow in a sampl..
Edmund has the utility function U(x, y) = 2xy + 1. The prices of x and y are both $1 and Edmund has an income of $20. How much of each good will he demand? A tax is placed on x so that it now costs Edmund $2 while his income and the price of y stay t..
If the proposed textbook receives a favorable review, explain how should the editor revise the probabilities of the various outcomes to take this information into account.
A project has cash flows of -$12,000 in Year 1, +$5000 in Years 2 and 3, -$2000 in Year 4, and +$6000 in Years 5 and 6. Find the interest rate of 12%. Find the interest rate that gives a net present value of zero.
Summarize Kuznets's Inverted-U Hypothesis and discuss the conceptual merits and limitaions of this hypothesis, especially in reference to African countries.
hire many more employee than were available on the island. As a result, prices for goods and services rose dramatically across the board.
Find out the optimal price-quantity if the firm can price discriminate but cannot charge a two part tariff.
Why would equilibrium cost of SUVs such as Ford Explorers and Chevy Trailblazers be lower than equilibrium cost of subcompacts.
Sets out the aggregate demand and aggregate supply schedules in Japan. Potential GDP is 600 trillion yen. What is the short-run macroeconomic equilibrium.
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