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One of the authors received a credit card bill for 2,772, but included a charge of 1,762 that was not valid. Find the values of the absolute and relative errors.
Ben’s preferences are represented by the marginal rate of substitution MRS = 2y/x. His income is I = 180. The market prices are Px = 3 and Py = 1. What is his optimal consumption basket?
You are a financial planner attempting to evaluate your investment strategy to recommend to clients. Based on your economic background, you believe the Fed is going to loosen monetary policy.
A company would want to make a direct investment in countries where the company’s home currency has higher purchasing power because the company should be able to:
Substitutability of inputs is an important characteristic of production functions. Also, capital deepening is a fundamental source of economic growth. Use the concept of input-substitutability to explain why the cost of manufactured goods tends to de..
How would public choice economics explain why the airline industry was regulated by the CAB? What would you predict would happen to the equality of services (food, leg room, frequency of flights, etc.) offered by airlines after elimination of CAB reg..
(a) Compute the annual depletion (each year may be cost-based or percentage-based). (b) What is the PW at i = 12% of the depletion schedule?
Morgan, a widow, recently passed away. The value of her assets at the time of death was $8,600,000. The cost of funeral was $18,000, whil estate administrative costs totaled $52,000. As stipulated in her will, she left $1,000,000 to charities. what i..
For each group identified in bold type below, use the labor-leisure choice model to illustrate graphically and then explain the change in the quantity of leisure desired. Be sure to explain how the group’s labor force participation rate is affected.
You just graduated from Engineering and have found a good job. However, fifteen (15) months ago you found yourself in a financial difficulty and had to borrow $3,000 from a high lending company (a “loan shark”) who charged 18%, compounded monthly for..
The Bureau of Labor Statistics reported the consumer price index as 90 in December 2009 and 100 in Decemb
Classify each of the following as a movement along or a shift of the production function and provide a justification for your choice.
Assume a given country two industries X and Y, and in autarky X is produced by a monopolist (with constant returns to scale). Using a graph, explain the procompetitive and comparative advantage gains from trade.
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