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Jack went one Friday night to Brad's Pub, where a glass of beer costs $2.00 and a shot of whisky costs $2.00, and he drank 6 glasses of beer and 4 shots of whisky. The next Friday night, he went to Mickey's Bar where a glass of beer costs $1.00 and a shot of whisky costs $3.00, and he drank 2 glasses of beer and 6 shots of whisky. Assuming Jack's preferences over beer and whisky did not change, was his behaviour consistent with those of a rational consumer model?
Draw the two budget constraints and explain your answer.
1 the primary reason for the creation of the federal reserve system wasa the desire to reduce or eliminate bank
Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment. a. How does this policy affect national saving, domestic investment, net capital outflow, the interest rate
Quantity of pizzas demanded soared he following week from 1 pie an hour to 100 pies an hour. Illustrate what was the price elasticity of demand for Domino's pizza.
Answer whether the following statements are true or false, explaining your answer in each case.
An illegal cartel has been formed through 3-leading ready mix cement suppliers in the local market. Total costs at various levels of service a day are as follows:
Use an interest rate of 8% per year to determine what the equivalent annual benefits must be to ensure a B/C ratio of at least 1.0.
What would be the clearing price for BP in the foreign exchange market - what would happen if both the US and the British governments fixed the price of BP at $1.45? Excess supply of BP / Excess demand for BP
Digby's product manager is considering lowering the price of the Dim product by $2.50 and wants to know what the impact will be on the product's contribution margin. Assuming no inventory carry costs, what will Dim's contribution margin be if the ..
Germany consumers have $50 in income "their gross domestice product". They spend $35 on consumer goods "$25 on Germany goods and $10 on imports", they save $8, and pay $7 in taxes. The government collects $7 in taxes and spends $10 on locally-made..
Describe the current global economic conditions and their effect on local macroeconomic indicators for your good or service. Describe the local economy's stage in the business cycle.
A busy professor can't decide whether to stay in his office to grade papers for another hour or to go home and go to bed. This is an example of:
In a closed economy, consumers spend $100 regardless of the level of income, the marginal propensity to consume is .8. Investment is equal to $200. The government spends $500 dollars and collects $150 dollars in taxes.
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