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A university in a metropolitan area wishes to increase its evening-school offerings of business-related courses such as marketing, accounting, finance, and management. Who are the target market customers (students) for these courses?
Elucidate the consumers opportunity set in a diagram. Explain how does this change alter the market rate of substitution between goods x and y.
Nobel laureate Paul Samuelson said that comparative advantage is one of the few ideas in economics that is both "true and not obvious." Since it's not obvious, we should practice with it a bit. In each of the cases below, who has the absolute advanta..
A firm's marginal rate of return on investment curve shows the amount
If the expected future exchange rate rises, the currency's
Assume that the price of x is $2 and the price of y is $1 and Brian has an income of $10. How much does he consume of each good? Assume Brian's income increases to 20$, calculate his demand for each good and explain whether Brian considers x and y to..
Let's assume that you own a fast food restaurant and you are faced with many customers each day eating in the restaurant without any tables.
Use your own life experience to explain the difference between the marginal and the average propensity to consume. In what circumstances could more saving be bad for the economy as a whole (search the Internet for the “paradox of thrift”)?
Everyone's Gasoline Problem. We are all familiar with fluctuating prices of gasoline at the pump. Explain why does this happen.
Consider palletizer at a bottling plant that has a first cost of $171,112, has operating and maintenance costs of $13,378 per year, and an estimated net salvage value of $62,550 at the end of 30 years. Assume an interest rate of 8%. What is the futur..
Assume that if the labor market is unregulated, the equilibrium wage for workers who do not have high school education is $5.00 an hour. Assume that the government imposes a minimum wage of $6.00 an hour. Draw a supply-demand diagram that shows what ..
Over the last decade, several firms have entered this industry and, as a consequence, Forey is earning a return on investment that roughly equals the interest rate. Furthermore, the four-firm concentration ratio and the Herfindahl-Hirschman index ..
What role does money play under the Classical Macroeconomic Model? Include the impact the Quantity Theory of Money and Say's Law have on this model and state in algebraic terms how the money supply relates to prices.
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