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QUESTIONS
1. How does the McPick 2 promotion resemble a consumer's optimal choice problem?
2. What feature of this case study illustrates diminishing marginal utility at work?
3. Give an example of a normal good and an inferior good mentioned in this case. Cite examples of income and substitution effects from the case.
What is the name for the inflation rate that people forecast and use to set the money wage rate and other money prices? What is the proposition that when the inflation rate changes?
Suppose that a firm is a perfectly competitive industry has the following total cost schedule: Compute a marginal cost and average cost schedule for this firm.
Explain the difference between the Keynesian and monetarist views on how an increase in the money supply causes inflation
Despite their differences, with which proposition are two economists chosen at random most likely to agree?
a) Draw this demand curve, labeling the values of the y- and x-intercepts. b) Show how his demand curve and values of the y- and x-intercepts change if he obtains health insurance with no deductible and a 20% coinsurance rate.
Examine two methods that the Federal Reserve can implement to support a stronger economic recovery. Provide support for each method in your response.
1.Commercial hotels cater chiefly to business travelers on the move and that's one reason why the term "transient hotel" is also used for this designation.
Explain the following in your presentation: How your organization's production function is related to its marginal product of labor How your organization's marginal product of labor is related to the value of its marginal product
The Federal Reserve's tools to control the money supply include: open-market operations, the discount rate, and interest payments on reserves.
Discuss the reason why governments might want to intervene and how they might do- with respect to the following "problem" in the functioning of an otherwise perfectly-competitive ("pareto-efficient") economy:
Pedro loves playing rock music at high volumes. Mario loves opera and hates rock. Unfortunately, they are next door neighbors in an apartment building with paper thin walls.
Explain what is meant by Classical Dichotomy and Monetary Neutrality in the LR. According to these concepts, do changes in monetary policy affect any macroecono
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