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Why might a person pay a firm at a mall to prepare her tax forms while she shops instead of allocating the same amount of time to finding a quality free-file tax preparation service?
Angela wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of gasoline at $2.50 per gallon, the car wash costs $2, but if she buys 10 gallons of gasoline, the car wash is free. For Angela, the marginal cost of the ..
Master Card had a series of cute commercials that list a series of accounting items and costs leading to a priceless product. Cell phones are often advertised as being free. In economics, it is said that nothing of value is either free or priceles..
Vulnerability Analysis
A furniture manufacturer is considering moving its production to India. Its production function is: Q = 1.52L.6K.4. In Canada, w = $24 & r = $4. In India, w = $4 & r = $24.
What are the values underlying the policy objectives? What values are revealed by the overt and covert objectives? What did the policymakers expect would be the result of the policy?
Suppose higher income implies higher imports thus lower net exports. The net-exports function becomes NX = NX(e,Y) . Examine the effects on a small open economy
Rolf's Supermarkets now sell 12,000 lbs. of grapefruit per week at a price of $0.45 per pound. An economist has reported to management that the arc elasticity of demand for the grapefruit over the price range $0.45 to $0.35 per pound is -2.0.
Explain why the payoff matrix in indicates that firms A and B face the prisoners' dilemma. from the following payoff matrix, where the payoffs are the profits or lesses of the two firms, determine (a) whether firm A has a dominant strategy, (b) wh..
The real GDP and consumption data for nation b in 1996 is in the following table. The investment is 25 billion, and government purchases is 5 billion, assume nation b has no international trade and tax. Real GDP in billions. 100. 200. 300. 400. 500 6..
Define the two waves of globalization. List at least three factors that played a key role in determining the first wave of globalization.
What factors make it difficult to determine the unemployment rate? Why is unemployment an economic problem? What are the noneconomic effects of unemployment? Who loses from unemployment?
1. Provide two economic motives justifying government involvement in education. Explain each. 2. Provide at least one economic motive justifying government NONinvolvement in education. Explain.
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