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Adverse selection can occur when: a. one party has information not available to the other party. b. incentives result in one party not reaching an agreement with the other party. c. all parties have full information. d. information is not full but both parties have the same information.
Assume that a 1- year discount bond (bond A) with a face value of $1,000 is currently trading at PV = $943.40 offers YTM = 6%, and another 2-year discount bond (bond B) with identical risk features and face value is currently trading at $873.44 and o..
What is happening to the value of the U.S. dollar these days? What causes the value of the U.S. dollar to rise or fall? Who demands U.S. dollar? Who supplies U.S. dollar? When we purchase German products, does our demand for euro go up or down? What ..
What would happen to the value of gold if people discovered that it could easily be made at home from inexpensive materials
illustrate what cost-minimizing combination of K and L will the manufacturer employ for the output levels in part a.
In January 2001, $1 was equal to 1.06 euro. By January 2012, $1 was worth 0.76 euro. As a result of the change in the value of the dollar:
Label aggregate demand curve as AD and aggregate supply curve as AS. Be sure to label axes appropriately. Identify and describe changes in AS-AD graph above that would result from cost-push inflation.
It has been argued that in the long run monopolistic competition is inefficient because
Compute the utility and MRS of C and F prior to exchange. Based on these MRS values, can C and F gain from exchange? If so, briefly explain how they would exchange.
Use a .01 level of significance to test if there is a difference in the mean production of the three assembly lines. Develop a 99% confidence interval for the difference in the means between Line B and Line C.
which of following is a characteristic of a binomial experiment. A. at least 2 outcomes are possible b. probability changes from trial to trial c. trials are independent d. None of these alternatives is correct.
Distinguish between comparative advantage and competitive advantage (may take some research on your part). Which is used by economists as a justification for international trade? Why?
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?
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