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Your uncle comes to you with an investment idea. He tells you that the nominal GDP of Paradisia quadrupled over the past year and suggests that you invest there. Unemployment is at 20 percent and inflation over the last year was 500 percent. This opportunity seems like a:
A) good investment given the expansion of money, the increase in real GDP, and the low unemployment rate.
B) good investment given the neutrality of money, the increase in real GDP, and the low unemployment rate.
C) poor investment given the neutrality of money, the decline in real GDP, and the high unemployment rate.
D) poor investment given the neutrality of money, the increase in real GDP, and the high unemployment rate.
Which of the following is the definition of the Consumer Price Index (CPI)?
Suppose a firm’s production function is: f(E,K) = 40K0.25E0.75 The corresponding marginal product functions are: MPK = 10K-0.75E0.75 and MPE = 30K0.25E-0.25 Suppose initially that the hourly wage is $9 and the price of each unit of capital is $15. If..
What does customer loyalty mean to you? Compare and contrast customer loyalty and customer satisfaction. Think back to your own personal experiences with customer loyalty. Explain one situation that really stands out. What makes you loyal to that com..
Draw a graph showing a supply and demand curve for wine. Indicate clearly the equilibrium price and quantity. Suppose that a lack of rain during the year has caused the grape harvest to be smaller than usual (grapes are an input for making wine). Sho..
Suppose, Worker 1 has a reservation price of 41 cents; worker 2s reservation price is 42 cents; worker 3s reservation price is 43 cents, and so on. There are 150 jobs in firms without air purification systems, and this number is fixed. Thus, the dema..
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Find the Backward Induction solution of the game. How would the answer change if we reversed the roles of player 1 and 2 in the first two rounds of the game in c?
A farmer sells cotton to a clothing company for $1,000 and the clothing company turns the cotton into T-shirts that it sells to a store for a total of $2,000. You bought a new Wii at GameStop last year and resold it on eBay this year. You purchase an..
q1. it some respects karl marx could be thought of as one of the last of the classical economists. analyze this
In December 1992, the government began requiring that food contain labels with nutritional information. The information had to be verified by independent laboratories. The price of verification was $20,000 per food item. What impact would this have o..
In an economic environment with no inflation. $10,000 is invested in a savings bond that yields a 7% annual rate of return for 8 years. For this particular bond, the investor has the choice of paying; Which tax option should the investor choose, and ..
A friend of yours has just returned from desert island where she was stranded alone since January 2009. Having completed Econ. 104 just prior to arriving on the desert island (and being naturally curious), Is international trade more or less importan..
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