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Q1. Given the choice between A($1000, p = 1.0) and B($1200, p=0.90), Kathy prefers gamble A. Does this mean she is risk averse? Explain. When offered C ($1000, p=0.20) and D($1200, p=0.18), she prefers gamble D. Show that these choices are inconsistent with expected utility maximization.
Q2. Sharon buys a ticket in a small lottery. There is a probability of 0.7 that she will win nothing, of 0.2 that she will win $10, and of 0.1 that she will win $50. What is the expected value of Sharon's winnings?
Economists argue that the move from barter to money increased trade and production. How is this possible.
Suppose that the supply curve of healthcare services is perfectly inelastic. Analyze the impact of an increase in consumer.
What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month.
DHL prides itself on having its own staff of more than 300,000 people spread across the globe, instead of relying on local agents.
Calculate real GDP in each year, and the percentage increase in real GDP from year 1 to year 2 using year 1 as the base year. Next, do the same calculations using the chain-weighting method.
Compare and contrast the way Classical and Keynesian theory determine the Demand for Money and how it is related to the Money Supply
What was the accounting profit for the new business. What was the economic profit or loss. Explain your calculations for both questions.
How would a law preventing landlords from charging above $900 give different results. What is such a price restriction called.
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
Can you think of circumstances in which each industry would exhibit the same capital-labor ratio in both countries.
If she neither borrows nor lends, which project has the higher present value at the interest rate 50%. Which has the higher present value at an interest rate of 5%.
Carefully explain the concept of the reaction function in duopoly analysis.
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