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Nicki lives in two periods and has a utility function u(c1, c2 ) = c1xc2, where c1 is her consumption in period 1, and c2 is her consumption in period 2. Nicki's income in period 1 (I1) is $400, and her income in period 2 (I2) is $220. She can borrow or lend at an interest rate of 10%.
Now suppose Nicki has the same endowment (I1,I2 ) in both periods. But the interest rate rises to 50%. In the same graph, draw Nicki's new inter temporal budget constraint.
Subprime lending is thought to be a contributing factor to the recent housing bubble. Which of the following is an example of subprime lending?
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities.
Ann’s preferences are represented by a utility function UA(x). Suppose one were to (coloquially) say that Carol has more “sensitive preferences” than Ann: her utility function UC (x) satisfies UC (x) = 2UA(x). Prove that for every choice set, Ann and..
q1. since the gdp is a total market value of final goods and services produced within a country over time. why is this
Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the busi..
abc computer company has a 20000000 factory in silicon valley. during the current year abc builds 2000000 worth of
Which of following arguments is president using to justify trade restriction on ball bearings.
When it comes to the goal of eliminating absolute poverty and income inequality, most economists would argue that
A city government in Arizona is considering a new waste disposal system. It has two options. Option A needs an outlay of $500,000 and requires O&M costs of $50,000 annually
Explain how do economists distinguish between the absolute and relative sizes of the public debt. Why is the distinction important.
Explicates which influences the marginal benefits also marginal costs associated with the decision to purchase a house.
The two general types of economic systems that exist today are A. market systems and capitalism. B. laissez-faire systems and pure command systems. C. market systems and command systems. D. socialism and central planning.
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