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Show an example of how to (1) derive compensating variation using indifference curves/budget constraints and (2) derive CV using expenditure function.
Also, (3) compute expenditure function from cobb-douglas utility function and quasi linear utility function
Just show example of this problem using your own numbers.
Imagine that a $10,000 ten-year bond was issued at an interest rate of 6%. You are thinking about buying this bond one year before the end of the ten years, but interest rates are now 9%. Given the change in interest rates, would you expect to pay mo..
What is anticipatory repudiation? Why is it important to be able to identify this type of a breach? How does it benefit the non-breaching party?
All stratified societies have groups of individuals that do not produce, but still receive a ‘cut’ of the social surplus. How does Diamond argue that these ‘privileged’ individuals manage to convince productive members of society to give them some of..
How many years would it take for an investment in year 1 with increases of 10%/yr to have a present worth f $1 million at an interest rate of 7%/yr?
U.S. government price supports for milk led to an unceasing surplus of milk. In an effort to reduce the surplus about a decade ago, Congress offered to pay dairy farmers to slaughter cows. Use two diagrams, one for the milk market and one for the mea..
Which of the problems in the construction of the CPI might be illustrated by each of the following situations?
q.suppose that we modify the solow growth model by allowing long-run technological progress. that is suppose that z 1
Evaluate the U.S. nursing shortage in terms of demand and supply.
Distinguish between interindustry and intraindustry trade, providing examples of each. Offer possible explanations for interindustry and intraindustry trade.
how much should you be able to get if you sell your future inheritance to the Neopolitan Bank (or any other bank) right now? Explain your work and why your answer makes intuitive sense.
Elucidate how this can be possible, in spite of the fact that the exchange itself creates nothing new the goods being traded are still the same as they were before being traded.
Please explain “opportunity cost” and give three examples from your own life. Please include and identify both “explicit” and “implicit” costs in your examples.
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