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Suppose both Smith and Jones utility functions of U(X,Y) = XY1/2. Smith is endowed with (X, Y) = (9,25) and Jones is endowed with (X, Y) = (25,9).
Draw an Edgeworth box with indifference curves through this endowment.
At what combinations of X and Y are both better off (i.e., are Pareto Improving)?
At what combinations of X and Y are there no more gains from trade (i.e., are Pareto Efficient)?
If they agreed on a price of one X for one Y, would they be better off?
Why do you thing they each would work. Illustrate what would the benefits of each action be besides emissions reduction.
Using a wholesale price of $4 per case in each state, calculate the breakeven output quantities for each alternative.
Now suppose the economists allow for crowding out. Illustrate what would their new estimate of the MPC be larger or smaller than their initial one.
Given this risk, how should the column player act. Anticipating the column player's thinking, how should the row player act.
Some of the largest import tariffs tax on imported goods is on shoes. Strangely, the cheaper the shoes, the higher the tariff.
Detail your choices, noting the why's of your choices and also discuss the effects on the stability of employment, inflation, and GDP as a result.
How might oligopolistic increase total revenue without changing prices.
The machine will be operating 2,500 hours per year with annual maintenance and operating costs of $6,000. Using an interest rate of 15%, what will the hourly cost be to run this machine?
If hard freeze eliminates Brazil's premium coffee crop, illustrate what will happen to the price of premium coffee.
Explain how do you calculate the cost index using the nominal GDP to get the real GDP in billions
Find a current article about one or more of the macro variables for a nation of your choosing, such as GDP, employment, inflation, or international trade.
Taking all taxes into account, what are your average and marginal tax rates? What happens to your tax bill and to your average and marginal tax rates if your income rises to $40,000?
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