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Alice writes two distinct real numbers between 0 and 1 on two chits of paper and places them in two different envelopes. Bob selects one of the envelopes randomly to inspect it. He then has to declare whether the number he sees is the bigger or smaller of the two. Is there any way he can expect to be correct more than half the times Alice plays this game with him?
Economists look at the differences between the short run and the long run in macroeconomics. Explain how might knowing this affect you as the manager of a large firm.
What is the opportunity cost of investing in capital?
Consider a hypothetical economy in which households spend $0.80 of each additional dollar of their after-tax income. The expenditure multiplier for this economy is ____. Suppose that this economy is experiencing a recession. The impact of a one-time ..
Make sure to include all appropriate graphs with supply and demand, the initial equilibrium and the shift in the supply or demand curve and the corresponding change in the price and quantity in each graph, as well as an intuitive explanation.
In 2014 the United States had a population of 319 million, of which 71 million were either under 16 years of age or institutionalized. Approximately 156 million people were either employed or unemployed but actively seeking work. What was the partici..
Behavioral finance is a brand-new field in analyzing prices in the market. In fact, most of the explanations come from psychological observations of daily lives. Provide a real world example that is not mentioned in class to show that people prefer t..
Analyze the effect of each scenario on the price of khaki pants. Think about how each scenario would affect the price of khaki pants. Create one graph that shows each of the demand-supply curves for the five scenarios listed in Step 1. Find the new e..
In "In Praise of Big Brother" (pp. 203-215), James Stacey Taylor argues for the optimistic conclusion that, with the right legal and procedural safeguards, large-scale governance surveillance would have many positive consequences.
What are the different types of unemployment and how are they related to the condition of the economy during a given period? Is it possible for the number of employed workers to increase while the unemployment rate rises? Explain??
Explain the link between factor productivity and variable costs. Use the example of labour productivity to illustrate the following:
At the end of 4 years, she sold the lot for a net value of $15,000. What rate of return did she receive on her investment?
Consider a two player game in which each player has only two strategies.
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