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1. Imagine that you're on vacation in Russia, when suddenly you're arrested and accused of spying for the United States. (You're innocent, of course.) Your captors inform you that if you confess, you'll receive a prison sentence of two years, while your co-conspirator (whom you've never heard of) will receive a prison sentence of twenty years. If you both confess, you'll each receive a prison sentence of five years. You're also told that your co-conspirator is being offered the same option. If you both maintain your innocence, however, there's not enough evidence to convict either of you. Applying economic theories to the problem, what should you choose to do, and why?
2. A hotel owner, having heard that new hotels plan to open in his area, saysl "We have too many hotels in this town already. Statistics show that vacancy rates average 20 percent on any given night." Assuming this is correct, evaluate his negative assessment of the situation in terms of business-stealing and product-variety externalities
As your client is intent on investing aggressively, you will want to include the "beta" associated with each instrument relative to the S&P 500 Index.
Amalgamate the information you have gathered and tell the economic consulting firm which actions you think OPEC will take over the next year based on your answers.
If the federal government chooses to increase government expenditures explain the three methods of financing the expenditures in terms of: which is the most expansionary, what are the negative effects of each, and which is the most inflationary.
Illustrate what is the elasticity of demand if you raise the price of your airline's tickets by 6% also the number of tickets sold decreases.
Assume the price falls to $ 7.50. What think would be a short-run impact on the production of the company. What would be the long term.
Louie produced 300 fire trucks. What action leads to both gains in revenue and loses in revenue for Louie.
Illustrate what determines whether or not economic efficiency is achieved. What determines whether or not economic efficiency is achieved.
Suppose that the learning effect coefficient in the production of wrist watches is -0.2. If the average cost of producing the first watch is $100, what will be the average cost of producing the 40 th watch?
He is going to travel the world this summer and won't be working. How much must be set aside in his savings account for the 3-month summer to cover his rent for next year? The savings account earns 3% with monthly compounding.
Write a formula which describes the marginal product of labor in the short run as a function of the amount of the labor used.
Research deflation in Japan and explain what happened to the equilibrium price level in Japan during the early 2000s. How did Japan's equilibrium price level adjust between the middle of 2008 and early 2010?
Are you concerned that automation may increase unemployment or underemployment in the United States and around the world.
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