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Analyze the external benefits to society and their efficient delivery:
If policey makers tihink that the natural rate of unemployment is lower than it really is, then their policeies designed to move the economy to the estimated natural rate, if continued over the long run, will:
Jim’s utility function is U(x, y) = xy. Jerry’s utility function is U(x, y) = 1, 000xy + 2, 000. Tammy’s utility function is U(x, y) = xy(1 − xy). Oral’s utility function is U(x, y) = −1/(10+ 2xy). Who has the same preferences as Jim? Who has the sam..
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a n..
Determine what fiscal policy measure has a more direct impact to the economy - Is it an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month? Explain your reasoning.
A new OSHA rule requires that welders be given 2 hour break for every 2 hours of work to prevent carpel tunnel syndrome. Using production theory, explain what will happen to the capital labor ratio in both the short run (when capital is fixed) and..
The central bank lowers discount to rise the nation's monetary base. The country has highly mobile international capital markets and a fixed exchange value system.
Recall the Application about the? Fed's expanded involvement in the economy following the financial crisis in 2008 to answer the following? question(s). According to the? Application, in 2010 the Fed A. stopped trading in Treasury securities. B. held..
Show how an open market sale affects the Fed's balance sheet and also the balance sheet of the commercial bank of the purchaser of the bond sold by the Fed.
John has the utility function U = Min{x,y}. The price of x is 1, the price of y is 1, and his income is 50. a) Find John’s optimal bundle. b) Suppose now there is a discount for the first 20 units of x John buys such that px=0.5 for those first 20 un..
A company that manufactures brushless blowers invested $650,000 in an automated quality control system for blower housings. The resultant savings was $160,000 per year for 5 years. If the equipment had a salvage value of $50,000, what rate of return ..
What is the Segmentation Choices for this Market and why is this choice relevant? What is the target segment(s)? Why is this the most attractive segment? What is the estimated segment size? What is the consumer promise or value proposition (summarize..
Some politicians and financial/economists argue that the U.S. must embark upon an era of “financial repression” in which wealth must be kept from fleeing the country and must be taxed heavily within the country. What would be the rationale for financ..
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