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Intro Economics questions
How do you calculate marginal rate of substitution?
1. What happens to the isoquant line if one cost or budget changes and which way do they move?
2. Long run average cost why it goes up and down
3. Production possibility frontier
4. How do we derive supply in perfect competition?
5. Producer surplus what is it and how do we calculate it
6. What are short run stages of production where does stage one and stage two and stage three begin
7. What are the conditions for maximizing profit?
Suppose the repeated application of a pesticide used on orange trees contaminates groundwater. The pesticide is applied annually in almost all of the orange groves throughout the world. Most orange growers regard the pesticide as a key input in their..
topic insurancesteve has taken an insurance policy to cover his 1940 house. at the time of application the insurer
Connecticut recently reported that it expects its pension funds to earn 8% or more per year. This is highly optimistic. What behaviors might their pension fund managers engage in in order to get these returns?
You own a large collection of fine wines. You are considering liquidating these assets. You predict that the value of your collection will rise in the next few years. If you assume your cost of capital to be 10 percent, when should you sell your coll..
Which policy monetary or fiscal would be more appropriate to improve the situation. Explain your choice clearly using figures.
Illustrate what salary would be required for the soldiers to be as well off as with the allowance.
In production theory, what distinguishes the short run from the long run? Can these periods be defined in terms of specific lengths of time? Why?
You think that you need $60,000/year to live on when you retire. Assuming an annual inflation of 3.4%, how much would you need in actual dollars per year 40 years from now to have the same purchasing capability?
Suppose the economy is in a long-run equilibrium, as shown in the following graph. Now suppose that a stock market crash causes aggregate demand to fall. Use your diagram to show what happens to output and the price level in the short run.
How can a small special-interest group win, since the benefits flow only to a small group, under a situation of majority voting?
Write out the supply of loans formula and use it to show what will happen to the supply of loans if private saving rises, then complete this sentence: If private saving rises, the supply of loans curve will_. Draw a graph showing the loan market in e..
How is the PCE calculated? What is the difference between the PCE and the GDP deflator? What is the difference between the PCE and the core PCE?
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