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Q. A consumer who conforms to the Von Neumann Morgenstern axioms is faced with four situations A, B, C, D. He prefers A to B, B to C and C to D. Suppose the consumer is indifferent between B and a lottery ticket with probabilities of 0.4 and 0.6 for A and D respectively and that he is indifferent between C and a lottery ticket with probabilities 0.2 and 0.8 for B and D respectively. Construct a set of von Neumann - Morgenstern utility numbers for the four situations.
Find the equilibrium price and quantity after the shift of the demand curve.
Expectations and consumer confidence are important in determining fluctuations in aggregate spending. In your opinion, what is the present status of consumer confidence.
What is output that should be produced to achieve economic efficiency and the value to society for correcting the externality.
Suppose that a pay equity plan has just been put in place in your organization. The pay equity consulting firm did a job evaluation and assigned points to each of the male-dominated and female-dominated jobs.
Federal Reserve lowers the required reserve ratio from 0.10 to 0.05. How does this affect the simple money multiplier.
Firms raise capital from investors by issuing shares in the primary markets
DHL prides itself on having its own staff of more than 300,000 people spread across the globe, instead of relying on local agents.
Analyze the impact of this floor on price, quantity demanded and supplied. Would this price floor create a surplus or deficit of this product in the market?
Similarities in the definitions of management quoted from authors of management textbooks
he perfectly competitive form maximizes profits by producing 10 units of output. At what price does it sell these units.
The United Nation's Department of Economic and Social Affairs, Population Division, tracks the total number of foreign-born people by nation.
Can you find a Nash equilibrium in pure strategies that is not efficient. In some legislatures, proposals for modifications of the law are formulated by committees.
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