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Explain the Law of Diminishing Returns and illustrate with a relevant example.
In order to rule on a potential federal grant, a government official must confirm that the average income in a Pennsylvania county is less than $12,500. A sample of 35 individuals is taken and shows a sample mean of $10,950 and a sample standard devi..
Elucidate the role of differentiation in the market for pizza. Then apply the feedback critique to the role of differentiation in the industry.
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Suppose that the wage distribution for Riverside is given below: Compute the level of wage inequality for the town using the 90th / 10th percentile ratio and the 90th / 50th and 50th /10th ratios. (Yes, this is as easy as it looks)
Assume that we care about the average welfare of individuals in Indian villages, i.e., we put equal weight on each individual's utility.
The terms of the loan are 10 years with an interest rate of 14%. What are the annual loan payments at the end of the year to the bank?
Suppose Richard has an after- tax income of $500 per week and must spend it all on food or clothing. If food is $5 per pound and clothing is $10 per piece, draw his budget line, where the amount of food is measured along the vertical axis and the amo..
Suppose that you are a borrower with a project that has a rate of return of 6.8%. You submit a bid to borrow $1,000 at an interest rate of 5%, and a lender accepts your offer. After you fund your project and pay back your loan, what is your gain or l..
Suppose the nation of Sugarland consists of 50,000 households, 10 of whom are sugar producers. Arguing that the sugar industry is vital to the national economy, sugar producers propose an import tariff. The loss in consumer surplus due to the tariff ..
What is the one share of this stock worth today at the required return of 18.5 percent?
You select two customers without replacement to get more information on their satisfaction. What is the probability that both say service is poor?
We have learned that the demand for money is a negative function of the nominal interest rate. Explain why it is the nominal and not the real interest rate that matters.
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