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Agnes, a risk-averse auto windshield installer who is currently paid a fixed wage, is offered a new plan under which her hourly wage is decreased but she is also paid a piece rate for every windshield installed, to the effect that if she worked the same hours as currently and installed the same number of windshields, her total compensation would be the same as before. How would the change affect Agnes's utility?
Assume production is described by Y = BK^alpha X^beta E^gamma L^1-alpha - beta - gamma, where K is capital, X is land, and E is energy. Capital evolves according to a typical Solow model, K^dot = sY - delta K. Land does not grow, X^dot = 0. Energy ev..
Suppose its GDP grows by 1% in the next year and the budget deficit is again $100 billion. Compute its new level of national debt and its new debt-GDP ratio.
If your cost of producing bran muffins is C(Q) = 2.5Q, determine the optimal number of bran muffins to sell in a single package and the optimal package price.
What changes in trade policy can be expected as countries such as China and India become increasingly influential in the global economy?
The marginal product concepts is the change in output associated with a one-unit change in an individual facort. Learning involves shift in LRAC curves over time. At the profit maximizing level of output for a monopolist, P>MC and MR=MC.
Explain why there is an oversupply of two of the following specialties.
How do the six-digit North American Industry Classification System (NAICS) and the therapeutic market definition of the pharmaceutical industry differ in terms of seller concentration? Which do you think is a better measure? Why? Think in terms of ac..
The exit of General Motors and now Ford from India market has been a much discussed topic. Obviously these decisions were taken NOT overnight, Ford indeed must
What is the effect of a decrease in wealth on the IS-LM-FE graphical model, as well as what it would do to the original real wage rate, employment, output, real interest rate, , consumption, private saving, investment, and price level in short run eq..
To raise money for a new business a man asks you to loan him some money. He offers to pay you $3000 at the end of four years. How much should you give him now if you want 12% interest per year on your money?
There has been a lot of debate regarding the nation's fiscal cliff. Given what you have read this week, what are your feelings regarding how the US government taxes us? What are your feelings regarding how the government spends money? Explain why you..
Give an example of consistent Fiscal Policy and Monetary Policy that you would choose to correct unemployment gap (Recession) that you suspect in the economy?
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