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1.Explain how does the existence of money reduce the costs of making transactions, relative to a society which is based totally on barter? English is becoming the usual language for international transactions, even if the language of neither country is English. How it reduces the costs of transacting?
2. There are two goods in the economy, anchovies (a fish) and bananas (a farm product). Draw the economies production possibilities before and after a natural disaster which lowers the banana harvest but does not affect anchovies.
Describe, using complete sentences, at least three specific features which your ideal bank would provide to you.
If Professor P chooses x and s to maximize her utility subject to the constraint that Mr. A is willing to work.
If you were a manager in a tobacco company, analyze the elasticity of demand for tobacco products. Evaluate the factors involved in making decisions about pricing tobacco.
Jim Vendors is viewing about manufacturing a new type of electric razor for men. If advertise were favorable, he would get a return of $100,000.
Calculate Max's marginal utility from snorkeling at each number of hours per day. Does Max's marginal utility from snorkeling obey the principle of diminishing marginal utility.
Compute the resulting utility if the population were on million higher and one million lower than the optimum.
Why might bad cars drive good cars out of the used-car market. Give at least two possible solutions to resolve this paradox.
Explain how does the concept of dualism adequately portrays the development picture in developing countries.
What is the deadweight loss in both markets if the price of a crate of fresh oranges is raised.
What is the rationale behind the choice of target or acquirer, if appropriate for your opening bid and your overall bidding strategy.
Profits associated with polluting for Friedman Inc. are π = 40Q - 2Q2, where Q = pollution emitted (in tons), and profits are measured in dollars.
What happens to each of these values if the central bank changes the reserve requirement ratio to 3%.
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