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Q1. Blue-eyed people are more likely to lose their expensive watches than are brown-eyed people. Specifically, there is an 80% probability to a blue- eyed individual will lose a $1000 watch during the year, but only a 20% probability to a brown-eyed individual will do so. In the population as a whole, half of the people are blue-eyed also half are brown-eyed.
Q2. Can an economy be faced with endless trade cycles also still have its Real GDP grow over time?
Leadbelly Co. sells pencils in a perfectly competitive product market and hires workers in a perfectly competitive labor market.
Explain why purchasing power parity measures of income levels tend to show smaller differences between poor and rich country
Every may either 'cooperate' with its rival or 'cheat' in every period of play. If both cooperate, they earn $100 every in that period.
Sharp rises in the cost of milk, grain, and fresh fruits and vegetables are hitting cafeterias across the country, forcing cash-strapped schools to raise prices or serve more economical dishes.
The setup cost is $100 per order up to 99. For orders of less than a pallet, the setup cost is $200. The setup cost for pallet loads is $1000. The holding cost is 1% of the purchasing cost per item per week.
To what extent does educational planning in the policy decision ought to be guided by economic considerations
Assume some pencil workers switch to jobs in the growing computer industry
Assume that over a range of prices, the price elasticity of demand varies, total revenue curve over these two ranges of the demand curve as price fall.
Suppose now the price of a cell phone minute falls to $.50 per minute. Show how this will change the budget line.
School tries to discourage Twinkie consumption by raising the price to $.40, by how much will Matt's mother have to increase his lunch allowance to provide him.
Smith has been trying to sell his house for 6 months although so far there are no purchasers. Draw the market for Smith's house.
Do protectionist policies benefit producers, consumers, workers, or the government
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