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Explain the law of diminishing marginal utility, and then discuss an instance where you have experienced this. Do we continue to purchase something even though it's marginal utility is decreasing? Why or why not?
What type of exchange rate system was the gold standard and how did it operate before 1914? What country was central to the system? What was the role of this country in the success of the currency system? "It is best for a country never to borrow fro..
California is a large producer of strawberries. Oh No! There is a killer frost that kills half of the crop! (A)How has this affected supply or demand of strawberries? (B)What has happened to the price of strawberries? Please justify your answer by gr..
State whether the following statements are True, False or Uncertain. Provide a short justification for your answer. (i) Bond A is a 5year bond with a 9% coupon rate and a YTM of 9%. Bond B is a 15year bond with a 8% coupon rate and a YTM of 10%. Bo..
Suppose that people expect the Fed to hit its inflation target. A: Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run.
Design an experiment. Select an independent variable and a dependent variable. What are some possible extraneous variables that may cause problems? Explain how you would control for the effects these variables may have on your dependent variable. Is ..
What effect does expansionary fiscal policy (under flexible exchange rate) have on the supply and demand for dollar in the FX market? What happen to the nominal price of the dollar, export, import and aggregate demand?
If one person consumes a public good:
Compare between EITC program and cash transfer welfare program in the standard income leisure model. Explain using the income-leisure model when an unemployment benefit program is successful. Do you agree that welfare programs must mandate working so..
Consider a Cobb-Douglas utility function of the type u(x,y) =x2y2. The prices of the two goods x,y are px = $2 and py=$4 consumers income is given by m=$100. find the optimal basket containing these two goods. find the demand functions for x. Must be..
The total fixed costs for manufacturing a product each month is $8,000. The variable cost per unit consists of direct labor, material and overhead. The labor will be based on the 25th unit and an 85% learning curve is expected to apply to the number ..
Explain whether you agree or disagree with the following statement: "The reason the aggregate demand curve is downward sloping is that when the price level is higher, people can't afford to buy as many goods and services."
A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 100,505 19,600 Labor (hours) 19,550 14,550 Raw materials (currency) $20,500 FC 19,550 Capital equipment (hours)..
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