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What are the two most commonly used/analyzed financial statements? Explain what each of these are, what info they contain, and why they are significant in evaluating the overall "health" of a company.
Representative consumers have the utility function U(C,Ls) = log(C) + log(1- Ls). Representative consumers have labor endowment of 1. So Ls must be less than 1. Write down the budget constraint of the representative consumer. Write down the maximizat..
If the logic of classical economics was not at fault for being unable to fix economic problems of the real world, what was in Keynes' opinion? In what publication did Keynes first discuss what would become known as the multiplier? What two criticisms..
The strategy of tit-for-tat is
Do you consider yourself an early adopter when it comes to trying out new products or new fashions, or do you tend to take a wait-and-see attitude? How does your attitude toward new products and new ideas influence your decision making as a consumer?
Regional economic integration and the consequent increase in increased dependence on each other creates incentives for political cooperation between the neighboring states and reduces the potential for violent conflict.
Using a fully labeled diagram, show the output that a price leading firm would produce if it sought to maximize short-run profit in rivalry with a “competitive fringe” (smaller firms involved in the market). Then show the output it would produce if i..
How to design an experiment to test the theory that changing the oil of the new backhoes and forklifts will reduce repairs.
Larger companies like Toyota and VW will ultimately survive - they have a good deal of money and power to ride out the storm. Toyota is still a top seller - even with all the problems they have had and continue to have. Can you explain why? Why would..
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time? 1. Write your indiv..
Government action is based on majority rule, whereas market action is based on mutual consent. The market allows for proportional representation of minorities, but minorities must yield to the views of the majority when activities are undertaken thro..
Suppose demand for a product Q = 1,200 - 4P and supply is Q = -200 +2P. Furthermore, suppose that the marginal external damage of this product is $8 per unit. How many more units of this product will the free market produce than is socially optimal? ..
Recessions often are related to the fact that consumers consume less of many of the goods they typically consume. During a recession unemployment typically increases. Relate this behavior to the budget line and indifference curves that we studied.
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