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Identify a personal economic decision that was driven by a behavioral bias rather than by pure rational behavior. Given your understanding of behavioral economics, how would your decision differ today?
Production Function Consider a production technology that uses two categories of factor inputs in production. Define K as the amount of capital input, L as the amount of labor input, x as the amount of output. The production function is x = F (K, L) ..
The foreign exchange market and the money market (the market in which you can borrow or lend in USD or Euro) are very efficient: so there is no room for arbitrage. The spot exchange rate between USD and Euro as of today is $0.9/Euro. The one-year int..
The economic argument for protectionism is that it preserves jobs, protects a nation's political security, discourages dependency on other countries, and:
Suppose that consumption expenditures, investment expenditures, and government purchases are 75 billion, 25 billion and 20 billion, respectively. How large should the GDP be so that the net export is zero?
In the table you just filled out, find where diminishing marginal productivity begins. Specifically, which is the first worker to add less marginal output than the previous worker?
Sally has set aside about $7500 for a down payment, and she has budgeted for a monthly payment of $900. She expects that her salary will increase about 5% per year in real terms,but she would like to use that increase for “fun” purposes. Sally is als..
Suppose the government imposes a 20-cent tax on the sellers of artificially sweetened beverages.
What is the definition of a contract? What are the required elements? What is the distinction between a void and avoidable contract; between an executive and an executor contract; and between a unilateral and bilateral contract?
Suppose a competitive firm and a monopolist each charge $5 for their respective outputs. One can conclude that:
Given the short-run (SR) cost curve in the chart above for a firm in a perfectly competitive market, find the firm’s best output level and total profits when the market price is: a) $18, b) $13 c) $5 d) $3.
Suppose the government is concerned that research assistants already make too little money and, therefore, wants to minimize the share of the tax paid by employees. Of the three tax proposals, which is best for accomplishing this goal?
Compute the approximate elasticity of supply from the following data:
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