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Why does government generally disallow proposed mergers in an Oligopoly market like what happened recently with the AT&T and T-Mobile merger? When do you think such mergers may be good for the economy and when will they be not a desirable thing?
Explain the concepts of impatience and internal discount rate (of an individual). (Hint: the example of a depletable resource may be useful for handling this task.) To determine the intertemporal consumption decision of an individual the concept of d..
Consider the economy described in Box 1. Consider also a “balanced budget” increase in G and T (in other words, G and T both rise by the same amount). Each increase of 1 unit in G and T will a) increase r by .005 b) increase r by .015 c) decrease r b..
All Open University Malaysia (OUM) Students are identical and they are all indifferent between attending the OUM and their next best alternative. Students eat are the student union.
Bad gums may mean a bad heart. Researchers discovered that 85% of people who have suffered a heart attack had periodontal disease, an inflammation of the gums.
Firms in perfect competition will leave the industry if they
1. The Phillips curve suggests a trade off between, a. unemployment rates and tax rates b. inflation and money supply c. monetary policy and fiscal policy d. unemployment rates and inflation d. inflation and GDP
Suppose that the cost of capturing a cockatoo and transporting him to the USA is $40 per bird. Cockatoo are drugged and smuggled in suitcases to the USA. Half of the smuggled birds die in transit. Each smuggled bird has a 10% probability of being dis..
The first national bank received 3,000 inquiries following the latest advertisement decribing its 30-month IRA accounts in the Boston World, a local newspaper. The most recent as in similar advertising campaign in Massachusetts Business, a regional b..
Consider an exchange economy with two goods, good 1 and good 2, and two consumers, A and B. The preferences of the consumers can be described by a convex indifference curve. A’s initial endowment consists of 10 units of good 1 and 15 units of good 2,..
Quality Motors is a Japanese-owned company that produces automobiles; all of its automobiles are produced in American plants. In 2012, Quality Motors produced $20 million worth of automobiles, with $12 million in sales to Americans, $6 million in sal..
As an advisor to the project manager, Derrick Westmuller, illustrate what set of procedures would you advise they adopt.
The Heckscher-Ohlin model assumes that there are two countries, each of which produces two goods (say manufactures and agriculture) using labor and capital. Which of the following is an additional assumption of the Heckscher-Ohlin model?
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