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Question: Victoria is choosing between a standard Honda Civic for $17,350 or a hybrid Civic for $20,875. She calculates her annual cost of ownership including payments but not including gasoline to be $5000 for the standard and $5800 for the hybrid. The standard Civic will cost Victoria 12c/mile for gasoline, while the hybrid will cost her only 7c/mile. How many miles must Victoria drive in a year before the hybrid vhicle becomes more cost efficient to her?
Licensure of physicians means that to some extent, the supply of physicians can be viewed as a vertical line. Explain what this means for the price of physician services. How might this change over time?
Explain how the number of "discouraged workers" (unemployed workers leaving the labor force) affects the official unemployment rate.
Changing the slope of the Phillips curve: Suppose the slope of the Phillips curve - the parameter v¯ - increases.
The market demand for photo film in a given town is Q = 500-10P where Q is measured as rolls of film. How much is the consumer surplus in the market for film?
The current market price is $7.50. At her profit-maximizing level of production, the average variable cost is $8.00, and the average total cost is $8.25. Mrs. Smith should.
Simone spends $200 a month on voice lessons and dance lessons. How will each of these events affect Simone's budget constraint for voice and dance lessons?
How does this concept factor into a commercial bank manager's decision about what interest rates to charge a poor entrepreneur and a rich entrepreneur?
Consider a consumer whose preferences can be represented by the utility function u(x, y) = x + y. Calculate the equivalent variation.
The bank of america faces a investor who would like to borrow 10,000 for a project. If this is a good project, it has 4/5 chance of being succeed which lead to a return of $15,000 and 1/5 chance of being failed which lead to a return of $11,000. On t..
Explain the difference between an endogenous variable and an exogenous variable. How is the equilibrium level of national income determined in a closed economy?
If people do not have a complete mental picture of total utility for every level of consumption, how can they find their utility-maximizing consumption choice?
a) What is meant by the minimum cash reserve requirements referred to in this clip?
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