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Why do points on a utility possibility curve represent efficient allocations of resources? Why must the utility possibility curve be downward sloping? Draw a utility possibility curve, and show how it is possible to achieve efficiency by moving from a point within the curve and the axes to a point on the curve. Create a graph on a spreadsheet program.
Suppose initially that the demand supply for premium coffees is in equilibrium. Now suppose Starbucks introduces the world premium blends, demand increase substantially.
question 1the smith corporation is a shoe-maker producing shoes branded p while its competitor produces shoes branded
When the Fed buys government securities in the open market, the money supply ________ because ________. In the quantity theory of money, the assumption that aggregate output is fixed is based on the view that ________.M1 differs from M2 because _____..
Does this production function display increasing, constant or decreasing returns to scale and find the corresponding minimum cost function assuming that w 1 and w 2 are given.
Linda loves buying shoes and going out to dance. Her utility function for pairs of shoes, S, and the number of times she goes dancing per month, T, is U(S, T) = 2ST, so MUs=2T and MUT=2S
question 1. suppose ve rational roommates are deciding on a place to have coee together. there are four alternatives
diminishing marginal utility explains a lot about consumer behavior in the economy. select a specific consumer behavior
1. consider the budget set of an individual who consumes health care hc and all other goods og . set up the equation
The tax revenue and the dead weight loss.
In developing a subdivision, the developer is required to build the roads to the city building code specifications and to deposit an amount which will allow the city to repave the roads every four years for an indefinite period of time. The costs ..
The firms and workers in Alpha form expectations adaptively. The firms and workers in Omega form expectations rationally. Their otherwise identical economies are initially in equilibrium at the natural level of output with 10 percent inflation.
problem 1 in a study relating college grade point average to time spent in various activities students are asked how
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