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Experience goods are products or services
a. that the customer already knows b. whose performance is highly unusual c. whose quality is undetectable when purchased d. not likely to cause repeat purchases e. all of the above
A Spanish can either produce 3 liters of win or 1 kilos of cheese. A Portuguese worker can either produce 4 litres of win or 12 kilos of cheese Which countries have absolute advantages in which goods? Which countries have comparative advantages in wh..
What is the current rate of inflation or deflation? Which one do think might be more disruptive for an economy, and why? Describe a policy in the AS-AD model that would reduce inflation from the current level. Do you the U.S. should adopt this policy..
What is the solution of the Solow model for consumption per person in the steady state, c ∗ = C ∗/L∗ ? How does each parameter in the solution affect c ∗ , and why?
Jerome says that he will spend exactly $25 each month on new apps for his mobile device, regardless of the price of apps. Jerome's demand for apps is
Explain how can tax cuts help revive the economy include discretionary fiscal policy, expansionary fiscal policy, tax multiplier, Aggregate Demand-some-not all--of these and/or other terms from this week.
q.suppose you are the manager of a home-building company and the government is considering eliminating the
The market demand for another product you are considering selling is Q(p) = 100 ? (1)p and as the 2. only producer of this product your production costs would be C(Q) = 40Q. What is the market price elasticity of demand at the optimal quantity?
Illustrate what will be the cumulative effects including the multiplier for each of the above three policy choices.
"In a 2x2x2 Heckscher-Ohlin context, when a relatively labor-abundant country moves from autarky to trade, the real return to capital in the import-competing industry decreases and the real return to capital in the export industry also decreases."
What are some of the key things that can shift the supply and demand of money? Explain how these shifts might happen.
The production function is given by f(x)=4x^1/2. If the price of a commodity produced is $60 per unit and the cost of the input is $20 per unit, how much profit will the firm make if it maximizes profit?
The methodology of combining forecasts is best described as
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