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Some people say that since inflation can be reduced in the long run without an increase in unemployment, we should reduce inflation to zero. Others believe that a steady rate of inflation at, say, 3 percent, should be our goal. What are the pros and cons of these two arguments? What, in your opinion, are good long-run goals for reducing inflation and unemployment?
A consumer has 400 to spend on goods X and Y. The market prices of these two goods are Px = $10 and Py = $40. a. What is the market rate of substitution between goods X and Y b. Illustrate the consumer's opportunity set in a carefully labeled diag..
A competitive firm uses a single input x to produce its output y. The firm's production function is given by y = x3/2 for quantities of x between 0 and 4. For quantities of a greater than 4, the firm's output is y = 4 + x.
In the state of California, rice growers burn their field stubble to sanitize their fields. The field burning causes serious air pollution. The alternative sanitizing method costs $150 per acre.
Calculate the marginal product of hiring additional barbers, and fill in the last column of the table. Over what range is the marginal product of labor increasing? constant? diminishing? Graph the production function. By looking at the graph, you ..
The answer from bond supply and demand analysis is consistent with the answer from the liquidity preference framework.
Find equilibrium price and equilibrium quantity for automobileindustry
You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university. Over 90 percent of your clientele consists of college students.
Hank Steinbrenner, the owner of the New York Yankees, has a utility function of wins in a season given by Mr. Steinbrenner has been offered a trade. He believes if he completes the trade, his probability of winning 121 games is 45%.
Assume that you are going to buy a car work $25,000. You will be able to make a down payment of $3,000. The remaining #22,000 will be financed by the dealer. The dealer computes your monthly payment to be $547.47 for 28 months of financing.
Suppose that the current price of oil is $60 per barrel and the quantity sold is 90 million barrels per day. Assume that the supply and demand curves for oil are linear. The current estimates of the price elasticity of supply and demand in the U.S..
What general conclusion can be reached with respect to the utility and acceptance of the H-O model?
According to the Lewis model, what is the magnitude of surplus labor? Do the producers in this sector make their decisions on the basis of profit maximization
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