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Jack is considering buying a gift card for Sue. Sue's utility is given by U(x,y) xy. She has $12 of her own and jack is considering a gift card for 150 units of x. The price of x is 2 and the price of y is 4. What is the maximum Jack can pay for the gift card to not be better off giving Sue cash?
What are problems that monopolies can cause, and why is it difficult for the government to control and regulate monopolistic enterprises?
Discussion. Discuss the significance and meaning of quantitative easing in the context of the liquidity preference model (increase in the quantity of money supplied). Provide specific examples to support your response.
Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 25,000 cases of cola were sold every week at a price of $7 per case. After the tax, 18,000 cases of cola are sold every week; consumers pay $8 per case (includin..
Specifically, in the RIMS II model espoused by the BEA, capital spending in a region induces job creation therein, based off of specific multipliers. Where do these multipliers come from, and what do they mean?
After earning her degree at SLCC School of Business then transferring to a four-year university, a recent accounting graduate is searching for a place to begin her career as an accountant. The current official unemployment rate of 4.6%, down from 4.9..
Identify a recent development (since 2000) of a complex system (commercial or military) of which you have some knowledge. Describe the need it was developed to fill and the principal ways in which it is superior to its predecessor(s). Briefly describ..
What are some of the problems and challenges of the different types of taxes available to government? How do you think they could be resolved?
The demand for a good X in a town is Q = 10 − P , where P is the price of good X per pound and Q is the quantity demanded in pounds. The marginal cost of producing the good is $2 per pound. There is no fixed cost of producing the good. What are the p..
Question: What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?
In the short run, when there is an increase in aggregate demand:
1. Set up the equation you will need to find the price that Mr. Smith will obtain when he sells the bond, Pt+1. You do not have to solve for the actual price he gets.
Madeline? Thimmes's Dream Store sells water beds and assorted supplies. Her best-selling bed has an annual demand of 395 units. Ordering cost is $35; holding cost is $5 per unit per year. To minimize the total cost, how many units should be ordered e..
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