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If Lewis' Marginal rate of substitution (MRS) between beer and cheese (with beer on the vertical axis and cheese on the horiontal access) is given by: MRS=-MUc/MUb=-4B/C what will be his optimal consumption choices of beer and cheese given the original prices of Pb=$2 and Pc=$5 and income =$500? How much income is spent on beer? How much on cheese?
What are the differences between Tobins and Baumols approaches of money demand.
A. Graphically show and explain how carpooling may eliminate the shortage and explain your answer. B. Graphically show and explain how building more freeway may eliminate the shortage and again explain your answer
Suppose Acme decides that instead of cutting the wholesale price of the CD players it will offer a $50 rebate to the consumer (that is, the wholesale price is $200.
an economic bad is something you dont want to consume i.e. less bad is better. define an economic bad mathematically
What is the formula for calculating the GDP for a country and how can it be applied and compared to other countries?
Larry, Curly and Moe run the only saloon in town. Larry wants to sell as many drinks as possible without losing money. Curly wants the saloon to bring in as much revenue as possible. Moe wants to make the largest possible profits.
The firm’s production manager claims that the firm’s average cost of production is minimized at an output of 40 units. Furthermore, she claims that 40 units is the firm’s profit-maximizing level of output.
Illustrate what is the discount rate in the banking system and explain how the Fed manipulates this rate in order to achieve macroeconomic objectives.
Unable to borrow from other banks, University Bank is forced to turn to the Federal Reserve for needed funds. What is the interest rate the Federal Reserve will charge University Bank called?
a. Explain how asymmetric information about a hidden action or a hidden characteristic can lead to moral hazard or adverse selection. b. Discuss a few tactics that managers can use to overcome these problems.
Write a 500-word comparative essay evaluating the key similarities and differences between the world's major forms of government. Examine the effectiveness of each form of government in meeting the needs of its citizens.
Discuss factors that could possibly influence the growth rate of your city and state. Do you live in a city or state that is experiencing growth? Is it possible that you live in a city or state where the population is on the decline or hasn't changed..
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