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Discuss the Becker-Murphy model of residential sorting. Be sure to explain the basic assumptions of the model. Under what circumstances is a neighborhood in equilibrium? Under what circumstances is a neighborhood stable?
Use the data provided below to calculate each of the following: the size of the labor force, the unemployment rate.
1. One IKEA executive says that the current global economic situation has "pushed innovation" at the company. In fact, he say, "This is a great time to be more innovative." Explain what he means.
Economists believe that the current values of the deposit multiplier and the money multiplier are widely divergent. Why might these values differ at present? What (if anything) do you think must happen for them to converge once again?
Demonstrate by example about production which exhibits constant returns to scale.
The White House sees a recession on the horizon, but Congress is preoccupied with other issues and is slow to act.
Explain utility, total utility and marginal utility and the differences between them. Include examples. Explain with examples the law of demand and the demand curve. Explain “the rational consumer, marginal utility and price.
Consider the market for minivans is at equilibrium. Determine, using the supply and demand model, how the following events might affect the equilibrium price and quantity for minivans. Explain why fully. Consider each separately.
Rent controls place price ceilings on rents at levels below market equilibrium rental rates for the stated purpose of making housing more affordable for low-income families. Using demand and supply analysis, answer the following questions:
Describe the difference between nominal, effective and real interest and calculate what is owed after 5 years for the following example. 10% interest on $100 over the course of 5 years. Where relevant, the compounding period is 1 year. Inflation is 5..
Illustrate what is James' opportunity cost of producing chickens. Which person has an absolute advantage in which activities.
A major bakery-cafe chain is evaluating whether they should consolidate its two offices into one location when the two leases expire. In addition, the company also needs to decide
Describe and explain the perspectives of three stakeholders. Include a discussion of the main arguments they put forward and the resolution/s they would opt for.
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