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1. Consider an individual facing a wage rate w. There's a total of 100 hours
available for work or leisure in a week.
(a) Represent his budget constraint graphically
(b) Represent the effect of an decrease in the wage rate
(c) Represent the effect of an proportional tax on labor income
(d) Suppose that the individual must pay a 10$ per week in taxes, regardless of how much he works. How does this affect his budget constraint?
What are the two main forms of economic distribution? What is the difference between them? The two major forms of economic distribution are exchange and transfer. Exchange in
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Define the Production Possibilities Curve and explain the basic economics concepts using the PPC. Explain the factors tht shift the PPC outwards
what is modern theory
not that long ago we experienced the excitement of thinking we would have cheaper online books and free music. these visions that we had of a free market utopia that blinded us to
Janet decides to play a game with her children, Jay and Jill (who are fraternal twins) and Mo. Each child is in their own room and cannot communicate with each other. Suppose Jill
When there is a positive expected rate of inflation (i.e., an expected and sustained increase in the levels of all prices), the Benefit Cost Ratio of a proposed project will take o
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