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Use indifference curve analysis to show how the Social Security pension system can reduce annual consumption for some workers who have a strong preference for current versus future consumption. What factors will influence the effect of the Social Security system on an individual's well-being and savings rate? Create a graph on a spreadsheet program (such as MS Excel), copy and paste it into a MS Word document.
Explain the paradox of why new cars usually lose a large fraction of their market value the moment they are driven from the showroom. Identify the economic principle that explains this paradox.
Illustrate which of the three cases, if any, do you think that demand has increased more rapidly than supply. Explain your reasoning.
EXplain how does a decrease in foreign price levels affect domestic aggregate expenditures and demand.
What is the significancee of this opportunity cost to the search for better technology to reduce pollution?
How these earnings differences have changed over the past half century, as well as what factors are responsible for these changes.
It is a hot day also Bert is thirsty. Here is value he places on a bottle of water.
Suppose that there are freezing temperatures in Florida. At the same time the press reports that drinking orange juice significantly reduces the risk of stomach cancer. Predict the effect on equilibrium price and quantity.
Indirect finance is more important than direct finance in most countries in part because of information costs associated with lending. Explain why are financial intermediaries relatively more effective at reducing these costs
Calculate the breakeven value at the low price of the data item that you consider most likely to be unreliable.
What would happen if suppliers charge less than the equilibrium price for your good or service.
What sort of relationship would you expect to see between the price of bonds and the interest rate?
In what did the South have a comparative advantage. Did the Civil War change any opportunity price in the South.
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