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Would these be true or false and why? -a consumer with positive marginal utility for each good will always choose a bundle on her budget line. -if darren views milk chocolate and dark chocolate as perfect substitutes, then he buys whatever is cheaper. -Rita has well-behaved preferences over steak and fries. at her current consumption bundle of 3 steaks and 10 fries, her marginal rate of substitution between steak and fries is 1/2 (in absolute value). if you offered to take away one fry and give her a steak, she would take that offer.
Illustrate what are the three major categories of expenditures for the federal government. Explain whether or not we should be concerned with net interest outlays and national debt.
A monopoly firm is different from a competitive firm in that there are many substitutes for a monopolist's product while there are no substitutes for a competitive firm's product or else.
GDP only raise by three quarters of the expected amount. Illustrate what factors might be responsible for this situation.
How much does it choose to sell when it enters the market? What is the resultant market price? How much does each of the two firms earn in profits?
Essay on Market imperfection associated with negative externalities
The only variable input a janitorial service firm uses to clean offices is workers who are paid a wage, w, of $8 per hour. Each worker can clean four offices in an hour. Determine the variable cost, average variable cost, and the marginal cost of cle..
According to Gerald Baker, columnist for London Financial Times, November 23, 1999, "In the US, banks are, by whichever measure chosen, in unusually good shape for this stage of an expansion.
In each of the following cases, either a recessionary orinflationary gap exists. Assume that the aggregate supply curveis horizontal so that the change in real GDP arising from a shiftof the aggregate demand curve equals the size of the shift of th..
In the national income accounting identity showing the equality between national saving and investment, what is the representation of private saving and what is the representation of public saving?
the knowledge you have collected in this course on monetary and fiscal policy actions, critically describe the transmission process.
Consider a market where supply and demand are given Qx^s=-10 +Px and Qx^d= 56-2Px. Suppose the government imposes a price floor of $25, and agrees to purchase any and all units concumers do not buy at the floor price of $235 per unit.
A contractor submits a bid on a project, for which more research and development work needs to be done. It is estimated that the total cost of satisfying the project specifications will be $20 million, plus the cost of the further research and dev..
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