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Let us suppose that the consumer is choosing between beer and milk. The consumer will always prefer beer to milk. However, if the consumer has two choose between two consumption bundles having equal amounts of beer and different amounts of milk, then he or she will choose the bundle having more milk. Draw the indifference curve of the consumer. What is this particular preference called?
Demonstrate how growth accounting could be utilized to learn the value of g. Analyze the effects of an unanticipated permanent reduction in g on the real income rate also the real interest rate.
If the machine could instead be leased for two years for some monthly payment (paid at the beginning of each month), what monthly cost would be equivalent to the original schedule of payments?
What is the average inflation rate. Explain how would inflation be different if real income growth were higher.
Assume that the central bank refuses to change the interest rate from 10%. In this case, illustrate what is the new level of output. What is the money supply.
Consider s market where there are many firms with different cost structures. If demand shift to the left (decreases), the last firm that entered____.
Two fi?rms compete in a duopoly market. Each fi?rm chooses a quantity and the price in the market is determined from the following inverse demand function.
Why do governments prefer to avoid excessive current account surpluses? Or, why are growing domestic claims to foreign wealth ever a problem?
Yet medicine with brand names that the man recognizes from television commercials sells for more the unadvertised versions. Elucidate in economic terms, this perplexing situation to the father.
The expected salvage value of the furniture is $5,000 in 2015. Determine the recovery period for the furniture and its depreciation deductions over the recovery period.
q. bud owen operates buds package store in a small college town. bud sells six packs for off-premises consumption. bud
Bright horizons a monopoly firm, offers a selection of light bulbs for sale. The product costs c = $40 to produce. The product may fail with probability 0.2, hence it is fully operative with probability = 0.8. This probability is public information i..
Which plan would you recommend that the Ridpaths choose? Why? What other health coverage options should the Ridpaths consider?
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