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Jill wants to rent a DVD but she has to decide whether to shop at the "Big Store" or at the "Small Store." Jill doesn't like to shop at the "Big Store" but they always have the DVD she wants. On the other hand, she doesn't mind going to the "Small Store" but there is a 20% chance that they don't have the DVD she wants. Jill gets 50 Utils of happiness if she gets to watch the DVD she wants, and looses 15 Utils if she shops at the "Big Store." Note that Jill doesn't have time to go to both shops. Where should Jill go to get her DVD? How valuable is it to Jill (in terms of Utils) to find out whether the "Small Store" has the DVD she wants?
Draw the supply and demand curves on the same diagram. Determine the equilibrium price and quantity and demonstrate it in your graph. Demonstrate the impact of a government price control set at P = $12 also P=$8.00. Demonstrate by number and in the g..
Consider an individual possessing a utility function (measured in "utils") over annual employment income M (measured in dollars) given by U(M) =10-13M3-(6)10-8M2+(1.5)10-2M. Graph U(M) for 0 ≤ M ≤ 400,000 in an appropriate diagram. Determine the ..
How do stock prices behave if stock markets are efficient and if investors do not care about risk? Explain the major options available to a bank that is short of reserves. What determines which option a bank is likely to choose? How can the Fed affec..
Which one is more effective comparing with the tools of fiscal policy?
Explain how financial institutions fit into the circular flow diagram (and more specifically why they are important for economic stability and growth). In your own words, explain why financial institutions (and, by extension, financial markets)
List the approximate periods associated with the largest, the second largest, and the third largest declines in real GDP since 1970 - identify two periods associated with the highest unemployment rate since 1970.
consider a group of college students who all receive a 1000 money endowment from their parents at the start of both the
Hypothesize the basic short-run and long-run behaviors of the model in the industry you have chosen in a market economy. and analyze at least three (3) possible areas for the industry that could lead to transaction costs, and explain each in detail.
consider the following statement chinas current account surplus implies that china has added more to global supply of
since 1995 the world trade organization wto has adjudicated trade disputes that arise between or among nations. now
Some psychologists see people's behavior as determined largely by family history and external environmental conditions. How would "cost" fit into their explanations?
Sam currently earns $30,000 per year. the governments is considering a policy that would increase sam's income by 12%, but raise all prices by 8%. what is sam's compensating variation for the proposed policy? can you compute it without knowing his..
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