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1. What does a steep indifference curve indicate about a consumer's preferences? What does a flat indifference curve say?
2. When are two goods perfect substitutes? What does the indifference curve look like, or what is its curvature?
Assume that the government at Home decided to use the import tariff of $100. Calculate the new world price, the new imported quantity and the tariff revenues collected by the government.
The following is a model of a closed economy with no government. C = 44 + 0.6YD I = 12 where C = desired consumption expenditure (in billions of $), YD = disposable income (in billions of $), and I = desired investment expenditure.
Explain difference between profit maximization and shareholder wealth maximization and determine which of these is a more comprehensive statement of a firm's economic objectives?
You are planning to build a new home with approximately 2,000-2,500 gross square feet living space on one floor. In addition, you are planning an attached two car garage (storage space) of approximately 450 gross square feet.
Assume that a monopolist considering to spend 500.000 usd on large campaign to promote the their products.The demand curves are defined by p = 150 - 3q, where q is the output-quantity in 1000-usd. By executing the campaign the firm expects the new de..
what is the case against an increase in the gas tax to the European level?
Assume that the reserve requirement is 5%. All other things equal, will the money supply expand more if the Federal Reserve busy $2,000 worth of bonds or if someone deposits in a bank $2,000 that he had been hiding in his cookie jar
What are the three approaches to measuring GDP?
Use excel to graph the NPW as a function of interest rate for all alternatives. Also a choice table for interest rates from 0% to 100%. Finally, which alternative should be chosen if MARR=15% QZY, Inc. is evaluating new widget machinesoffered by th..
How would you describe the pattern of world economic growth over the past 2,000 years? Approximately when did economic growth really take off?
A Man is planning to retire in 20 years. He can deposit money for his retirement at 6% compounded monthly. It is estimated that the future general inflation rate will be 5% compounded annually. What deposit must be made each month..
A company is planning to buy an inspection device for $45,000. The expected life of the machine is 5 years, and the expected annual taxes and operating cost are $600 for the first year with an added increase per year of $100 per year for years 2 t..
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