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List and describe the three functions of money. When someone compares prices, which function of money are they using?
Consider the following HYPOTHETICAL scenario: Imagine an island economy that is periodically struck by an epidemic disease that affects only children. What would be the market solution to this problem if the island economy operated as a pure market e..
What are the arguments in favour of developing a global set of rules governing MNC investment?
Assume that the University Regents implement a policy that requires the box office to sell all tickets at a price of $35 regardless of who is playing. Think about all of this information, Then: Draw appropriate supply and demand curves to represent t..
A firm has just increased its price by 35 percent over last year’s price, and it found that quantity sold decreased by 45 percent. The firm comes to you and wants to know its price elasticity of demand. What additional information would you search fo..
If not, which characteristic is not satisfied? Please explain your answer in the language of economics.
Write down Pierre's budget constraint. Is it optimal for Pierre to supply 0.75 units of labour?
A corporation has ten employees, all of whom want a more pleasant work environment. Accordingly, they are considering removing litter from the grounds of plant.
Assume that the cost of producing ice cream is $1.20 per gallon. You estimate that you can sell 1,000 gallons per month. If you want to earn revenue of $2,500 per month, what price should you charge for a gallon of ice cream? Assume that your estimat..
Suppose that firm 1 and firm 2 operate under conditions of constant average and marginal cost but that firm 1’s marginal cost is c1 = 10 and firm 2’s marginal cost c2 = 8. Market demand is Q = 500 − 20P. Compute firms’ prices, profit and market outco..
Imagine a waste processing plant that is causing air pollution (measured in tons per year), and has marginal abatement costs given by MAC1 = 100 – 0.005E1. The marginal damages from the pollution is given by MD = 0.003E. The government establishes li..
Conduct a hypothesis test, by calculating the z-score, at a = .05, for a two-tailed test.
Assume that a competitive market has an upward-sloping supply curve and a downwardsloping demand curve, both of which are linear. A tax of $0.10 per unit is currently imposed in the market. Suppose that with the tax the equilibrium quantity is 70,000..
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