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Do you think that households make a distinction between spending for current expenses and spending for capital expenses? For example, compare borrowing $10,000 to take a month's holiday to Hawaii to borrowing $250,000 to buy an apartment.
A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men and attribute greater value to th..
Should an organization create its budget first and then design its strategic plan based upon projected numbers or should the organization create its strategic plan first and then create its budget? WHY?
Illustrate what monetary policy tools should the Fed use to achieve the results you recommend.
Consider an intertemporal model in which representative households choose consumption, c(subscript t+1) and two types of bonds b(subscript 1,t+1) and b(subscript 2,t+1) to maximize their utility over time, prices are perfectly flexible, and all marke..
Which of the following could be the price elasticity of demand for a good for which a decrease in price would decrease revenue?
Under a strict command-and-control framework, suppose abatement standards are set equally across polluters. Assume the total abatement target is 30 units. Show the cost implications using three graphs, each of a different polluter with a unique MAC c..
Suppose the own price elasticity of demand for good X is -5, its income elasticity is -3, its advertising elasticity is 3, and the cross-price elasticity of demand between it and good Y is 5. Determine how much the consumption of this good will chang..
What is the marginal opportunity cost of producing the second unit of clothing? What is the total opportunity cost of producing the second unit of clothing? What is the marginal opportunity cost of producing the third unit of clothing? What is the to..
Assume the following data for the economy in the United States: Inflation is at 4.5% and has been rising for the last 3 years from a low of 1.2%. What problem is the economy facing? What could happen in the economy that might make that policy choice..
Who stands to gain something from the use of malware? Is this a money-making opportunity or simply people that want to do harm?
For each of the following decide whether the statement is true, false, or uncertain and explain why. Your explanation is the important part of the answer, make sure to draw graphs. If consumers decide to save more at a given level of disposable incom..
First address what inflation is and how it is measured. Then, discuss the role it plays in our economy and list some specific strategies that can be used for controlling inflation. When commenting to your classmates’ posts, discuss whether or not you..
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