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Jordan can make a pancake for $0.30 (This is the cost of the ingredients he uses). Jesse can make one for $0.40. Jordan clearly has an advantage, but is it an absolute or a comparative advantage? Explain your answer.
The demand curve for two liter bottles of soda is given by QD=4000-300P, and the supply curve is given by QS=1300P. In an effort to reduce soda consumption, the government has placed a tax of $4 per two-liter bottle that is added to the consumer’s bi..
What is the Phillips curve? Understand why positive unexpected inflation is associated with a negative output gap and vice-versa. Understand why combining the Phillips Curve with adaptive expectations of inflation means that Y above Y* will mean ever..
Which program forces farmers to destroy millions of dollars worth of crops each year?
Which of the following two bonds are more prices sensitive to changes in interest rate? A par value bond, X, with 6-year-to-maturity and 10% coupon rate.
The price of twinkies fell from 0.80 to 0.70.As a result,the quantity demanded of Ho-Ho's decrease from 120 to 100. Illustrate what would be the appropriate elasticity to compute. compute this elasticity.
Assume you are part of a research team evaluating a proposal to clean up a dangerous squander site.
Bud has very limited store space and has decided to limit his product line to one brand of beer, choosing to forego the snack food lines that normally accompany his business.
Consider the problem of carbon dioxide emissions. We will abstract from the complexity of the problem slightly, assuming there are polluters and consumers in two regions, the OECD (O) and the rest of the world (R). Proposal A involves the polluters p..
The Federal Reserve purchases $1 million in U.S. Treasury bonds from a bond dealer, and the dealer's bank credits the dealer's account. The reserve ratio is 15 percent. Assuming that no currency leakage occurs, how much will the bank lend to its cust..
If the entry barrier is removed consumers will be better off because consumers will enjoy greater consumer surplus. Explain.
A manager has been allotted $8000 to spend on the development and promotion of a new product. It is estimated that if x thousand dollars are spent on development and y thousand dollars on promotion, approximately f(x,y)=91x^(1/2)*y^(3/2) units of the..
What is maximum amount it would be worth to shareholders to elicit high CEO effort all time rather low CEO effort all time.
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