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Think about what you would be doing if you weren’t in class. The alternatives are infinite and computing the cost of them all is impossible. However, since you could only be doing one thing (not all of them) if you were not in class, determining the opportunity cost requires only knowing the one thing you would be doing. Calculate (in $$$) your opportunity costs of sitting in class.
When the price of an input decreases, the output effect (or real purchasing power effect) only predicts that, all else remaining constant,.... When the price of an input decreases, the substitution effect predicts that, all else remaining constant,....
The bond, which may be called after five years, has a nominal yield to call of 5.4%. What is the bond's call price?
What is the total market demand for polyglue at the price established by Alchem in Part (a). How much of the total demand do the follower firms supply?
insist that this represents a rightward shift of aggregate demand curve. Who is right. Explain.
Assume the money supply (M) is $1,200 billion, bank deposits (D) are $800 billion and the required reserve ratio is 10%. What would the Fed have to do (in terms of open market operations) to lower the money supply by 5% ? Explain.
Call P the unit price of each stamp and find out how many stamps and how many photocopies the firms purchase depending on the value of P.
In an essay of at least two well-developed paragraphs, explain how making regular deposits in a savings account or buying shares of stock or bonds makes an impact on our economy.
Elucidate how does N the number of firms in the market, affect each firms Demand curve. Explain why.
Explain why does a newspaper dispenser open to a stack of newspaper and essentially "trusts" a consumer to take just one copy.
Suppose price of widgets is $10. How many widgets does each firm produce. How much profit does each firm earn. Is industry in long-run equilibrium? How do you know.
Explain how low must a quota be in effect to have an impact. Using a demand-and-supply diagram, illustrate and explain the net welfare loss from imposing such a quota.
Which of the following is often not a disadvantage of decentralization?
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