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Suppose that movies are a normal good, but public transport is inferior. Draw an indifference map with a budget constraint and initial equilibrium. Now let income increase and draw a plausible new equilibrium, noting that one of the goods is inferior.
Pat and Kris are roommates. They spend most of their time studying (of course), but some time for their favorite activities: making pizza and brewing root beer. Pat takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza.
Large number of tecnical training instituitions have been started by government.
A major advantage of production function is that it can be easily transformed into a linear function, and thus can be analyzed with the linear regression method.
On amazon.com, 45 percent of customers pay by American Express credit card. Suppose we have a sample of 5 customers, what is the probability that at least 4 will pay by American Express
The more people decide to hold currency, the A bank currently has $50 million in deposits, $6 million in cash in the vault, $4 million on deposit with the Fed, and $5 million in government securities. The required reserved ratio is percent.
Sally earns $3,000 per month on two goods, A and B, whose prices are $30 and $60 respectively. She is currently spending half her income on each good and maximizing her utility. How much of each good is she consuming
The service times are uniformly distributed, with a minimum of 10 seconds and a maximum of 55 seconds. Develop the CPGs needed for the simulation.
R&D planning. A firm is in the process of assessing the economic prospects for a new bottling machine it is developing. Future research and development expenses could range from $4 to $9 million, with a most likley value around 7$ million.
If the local government can enforce a rent-control law that sets the maximum monthly rent at $1000, will there be a surplus or a shortage? Of how many units? Explain how the market can adjust?
What is the pattern of comparative advantage here?
Suppose that every driver faces 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,000. Suppose there are two types of individuals: those with $60,000 in the bank and those with $5,000 in the ba..
A project generates decreasing cash flows, $10,000 one year from now, decreases $1,000 every year and the project at the end of year 6 (6 years from now). At an annual interest rate of 12%.what type of Gradient is this
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