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Explain rational expectations in your own words. Using the rational expectations model is the U.S. stock market efficient? Why or Why not?
Explain a worker’s labor-leisure choice associated with a wage decrease (assuming non labor income does not change). Illustrate the income and substitution effect associated this wage change on an appropriate graph. Label all curves and axis.
Illustrate what closing time should Citywide Spirits Shoppe choose to maximize profits.
Suppose Canada's exchange rate with the euro rises from 1.2 to 1.4. This rise indicates a(n) ________ of the Canadian dollar, which means it takes ________ Canadian dollars to purchase one euro.
Suppose that you leave a job that pays $40,000/year and use $10,000 of your savings that had been earning $500/year in interest in order to start your own business. In your business, you sell 450 units at $60/unit while paying $12,000 for capital cos..
Why might foreign aid not reduce poverty of a developing country? Explain Three different reasons based on the foreign aid.
For each of the following goods, give your best estimate of its most likely degree of rivalness and (relative) exclusion cost, using the definitions of these variables and the information in the course notes on externalities and public goods.
Suppose that two people, Mary and John each live alone in an isolated region. y each have same resources available and y grow corn and raise pigs. What is John' opportunity cost of producing corn.
Why/how does inflation impact the growth rate of the economy in the medium run.
The more progressive the tax system, the: The portion of the public debt owed to foreigners does not represent any real economic burden to Americans because we received money from foreigners when we incurred the debt. The so-called "recognition lag"..
Assume you want to test the null hypothesis that the mean value of the bill in the box is 9 against the alternative that it is less than 9.
If due to over-harvesting of coconuts they become more difficult to acquire, taking 2 hours to pick one coconut, Illustrate what combination will maximize utility.
How much deadweight loss does Great Reception causes when it restricts output and charges a price above marginal cost.
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