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You regress income (Y) on years of education (X) and get the following result:
Y = 20000 + 4000X. What would be the estimated value for the average increase in income from going to college for four years versus going to work directly out of high school?
The solution mentions the OPEC Oil Cartel, the company's stated goals, the member-countries, and when it was founded. Their role in keeping oil prices high, and the difficulties they faced in keeping the cartel united.
Assume first that Apple were to sell only 4GB iPods after all,they cost the same and some consumers prefer more than less. What is the optimal price for a 4GB iPod.
Suppose that a fall in consumer spending causes a recession. a. Illustrate the changes in the economy using both an aggregate-supply/aggregate-demand diagram and a Phillips-curve diagram
Discuss the impact of foreign economic aid from rich countries to LDCs and should developing nations continue to seek such aid?
Compare and contrast the monopolist and the monopolistic firm Monopolistic competition is an inefficient form of organisation. Discuss
Given the industry's concern that workers shirk, they start employee at $10 and increase the pay by $0.40 each year they are on the job.
The Bureau of Economic Analysis has been hit by the flu; consequently, it has been slow in getting out data on economic performance. A recession is developing, but nobody knows it yet. This delay is an example of
Under certain circumstances, expansionary Fed policy may not have much of an effect on the rate of economic growth. Give a reason why, and explain?
The total costs of a firm under perfect competition is given by the equation TC = 5,000 + 4Q + 2Q^2 and the market price is $100 per unit.
Find out optimal consumption level of video games and burritos that maximizes total utility.
An increase in TFP leads to an outwards shift in labor demand (recall this from our firm analysis unit), which, as long as the upward-sloping labor supply function does not shift, leads to an increase in the real wage.
Explain how banks and individuals can use "covered interest arbitrage" to protect themselves when they make international financial investments.
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