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1. Explain clearly what the "phantom" or compensated budget constraint represents.
2. Explain clearly what the income and substitution effects are. Use examples if you wish
Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 15 billion cases of beer were sold every year at a price of $7 per case. The amount of the tax on a case of beer is $_______ per case. Of this amount, the burden..
How large is the money multiplier when the required reserves ratio is 0.10? If the required reserves ratio increases to 0.125, what happens to the money multiplier?
Suppose the one-year interest rate on Swiss France is 10% and the US Dollar interest rate is 12% and the current $/SF spot rate is 0.8. What do you expect the 12-month forward rate by using the interest rate parity? Suppose the actual 12-month forwar..
Let's say that companies that produce and sell silk shirts hire analysts to analyze the economy and make guesses about the future
Suppose in Belgium the opportunity cost of producing a trombone is 8 clarinets. In Denmark the opportunity cost of producing a trombone is 6 clarinets. Which country has a comparative advantage in the production of trombones?
Economists assume that firms seek to
Believe that they must be able to explain people's tastes in order to elucidate what happens when tastes change.
Explain the agency relationship that exists on social media sites between the social media provider and businesses that utilize the site for advertising.
Estimate the deadweight loss from monopoly. Assume, in addition to the costs above, the musician on the album has to be paid. The company is considering four options.
Suppose that the production function is y=ka, where y and k denote production per unit of effective labor and capital per unit of effective labor, respectively. Suppose also that the saving rate, the depreciation rate, the growth rate of the populati..
Which of the following is a method for the Federal Reserve to control the supply of money? Open-market operations refer to the Federal Reserve: What determines the weights for calculating the Consumer Price Index?
case study - technology and economic change getting the benefits fromtasks to be undertakenbull read chapter 13 in
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