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Consider Bob, he washes his car by hand rather than taking it to the local car wash. When asked why he washes it by hand, Bob explains "you should never pay for something you can do yourself." Evaluate the validity of Bob's statement, especially in terms of absolute and comparative advantage.
Consider a market-clearing economy in which output (Y 1 )depends only on the capital stock (k 1 ) and an exogenous productivity variable ( θ1 ) according to the production function y1 = θ 2 f(k 2 ).
We have assumed that consumption depends only on disposable income. Now suppose that consumptions depend on both disposable income and interest rate. As interest rate increase, consumption decrease. a. If consumption suddenly begins to depend on in..
A monopolist faces demand curve p = 11-Q , where Q is measured in thousands of units. Compute the firm's degree of monopoly power using the Lerner index?
Assume the Chinese government abandons the peg and allows the yuan to float.What would be the effect on Chinese imports and exports.
Among the advantages of technique of forecasting are ease of calculation, relatively little requirement for analytical skills, and the ability to provide the analyst
The utility function of a worker is represented by U(C,L) = C X L, so that the marginal utility of leisure is C and the marginal consumption is L.
Explain the 4-broad categories of GDP using consumption approach. Give explained account of each component and determine the Natural Rate of Unemployment.
Utilizing such areas as manufacturing and information technology or any related industry / areas that have had high job growth rates explain a scenario that would cause a shift in labor supply and demand.
Which of the following items are included in the calculation of GNP in the UK, and which are excluded?
Are we able to make an inference about competitiveness of an industry from profitability? Or would we need more data to see the competitive level of an industry?
The table given below gives the production and values for a small economy that produces only bread and pop. The base year is 2002.
Important information regarding Price Elasticity of Demand and Total Revenue
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