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Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator who chooses the best proposal (effectively giving one side or the other $1 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $200,000) who is effective at preparing the proposal in the best light. If neither hires lawyers or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win three-quarters of the time.
What methods would you suggest to assess the potential commercial success for the following new products? (a) a new, improved ketchup; (b) a three-dimensional television system that took the company 10 years to develop; and (c) a new children's toy o..
The Fed's actions are subject to executive branch control. Politically controlled banks are better at fighting inflation than are independent central banks. The Federal Reserve is considered to be an independent central bank. The Federal Reserve Syst..
If the economy was experiencing a severe recession, which of the following combinations of monetary and fiscal policy actions would be most appropriate?
Suppose the demand for Coca-Cola increases due to a change in consumer tastes. Ceteris paribus, the equilibrium price should _______ and the equilibrium quantity should _______.
When the price of wine is $10 per bottle, Tom purchases 30 bottles every month. Later, the government introduces a 50% tax on all alcoholic beverages, which is to be completely borne by consumers. This reduces Thomas's consumption to 16 bottles of wi..
What are macroeconomic factors and are they useful for economic forecasting? What are economic indicators? Are any of them useful for forecasting economic growth?
q1. expectations and consumer confidence are important in determining fluctuations in aggregate spending. in your
how to compute implicit explcit and opportunity costs. jamal has a flexible job. he can work everyday but is allowed to take a day off anytime he wants.
Most tribal people prefer to be referred to by:
The Determinants of Market Interest Rates. An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cross product between the real rate and inflation.
Consider the utility function U(x,y)=3x+6y. An agent with a budget constraint of 15x+5y=30 will choose which of the following bundles in order to maximize his utility? 1/2 unit of x and 1 unit of y 2 units of x 2/3 units of x and 4 units of y 6 units..
Provide an example of a positive production externality, either one you have read about or found through research, or one that is hypothetical. The example should clearly state what benefit arises out of the production, and how this benefit without t..
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