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Question: Describe a recent purchase that you made. What was the opportunity cost? Applying the decision rule for consumption choices, discuss whether your purchase was optimal.
Suggested length: no more than two paragraphs.
Consider the following graph of a monopolistically competitive firm selling DVDs. A. How many DVDs should be sold to rent per day to maximize profit. B. What is the economic profit for this firm operating where economic profit is maximized.
Identify where the appropriate entries go in the circular flow diagram.
What is a fair "profit rate" for a nonprofit organization? Will an increase in minimum decrease low wage job? Always? Is a constitutional amendment to balance the Federal budget desirable?
BudgetSurplus: The amount by which government revenues exceedgovernment expenditures in a given year. PublicDebt: The total accumulation of the FederalGovernment's total deficits and surpluses which have occurredthrough time.
Which basis of accounting more clearly reflects the income and expense of the organization? Why? How might the method of reporting skew the true picture of the year's record?
When the required reserve ratio is increased or decreased? When the discount rate is increased or decreased?
The CigconsumpNE dataset contains the log demand price, and per capita income variables for the six New England states in wide format.
Provide comment on the relative merits of increasing excise taxes compared to imposing a minimum price on alcohol products for reducing alcohol consumption.
What statement demonstrates the economic agents respond to incentives
Now suppose that you face two other bidders and believe that a typical competitor's value for the building lies between $2 million and $3.5 million, with all values in between equally likely. (Again, your value is $2.9 million.) Assuming your two ..
1) The multiplier. Assume the MPC is 3/4. a) What is the value of the multiplier?
Using the theory discussed in class, please demonstrate why a market demand function is thought to be downward sloping. Can individual consumer demand functions be upward sloping? Why or why not?
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