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Consumer Choice
What is the consumers budget constraint?
How does a consumer choose how much of different goods to consume?
What are the income and substitution effects?
How does the demand curve relate to the consumer choice problem?
How does the consumer choice problem relate to labor supply and borrowing/lending behavior?
Asymmetric Information and Healthcare
What is moral hazard?
What is adverse selection?
How do these two concepts relate to the market for insurance and healthcare?
How do insurance companies try to deal with adverse selection and moral hazard?
The marginal revenue generated for the monopolist by the 13in unit of its product is $6. What is the market-clearing price for the monopolist's product when 13 units are supplied to the market?
Does the concept of technological efficiency permit us to determine at which point on an isoquant a firm should operate.
What is the difference between a production function and an quant. Explain the law of variable proportions with the help of quant.
A consumer buys only two goods, X & Y. a) If the MRS between X and Y is 2 and the marginal utility of X is 20, what is the marginal utility of Y?
Which of the subsequent correctly describes an external benefit resulting from A person's purchase of flu shots from a doctor.
Deficient as the sole mechanism for determining the optimal level of resource employment.
Illustrate what is the composite rate of return for the Honda Motor Corp. engineering group in the previous problem if the reinvestment rate.
Explicate 2 important indicators the Federal Reserve System will use to analyze this particular economic situation.
The actual labor costs is 1/4 more than the budgeted labor costs, and the actual profit is 1/6 less than the budgeted profit. So, under management by exception, which costs deserve further explanation?
disposable personal income decreases by $50 billion and trade deficit is reduced by $15 billion. By how much has national income (Y) change.
Illustrate what are the opportunity costs for the manager of being in this business relative to returning to his old job. What is the economic profit of the business.
Explain what is meant by "first-mover" advantage and how each of these firms was able to control a relatively large share of their respective markets.
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