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1. One of the scarce resources that constrain our behavior is time.
Each of us has only 24 hours in a day.How do you go about allocating your time in a given day among competing alternatives?
How do you go about weighing the alternatives? Once you choose a most important use of time, why do you not spend all your time on it? Use the notion of opportunity cost in your answer.
2. Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?
a. The inheritance tax should be repealed because it is unfair.
b. Allowing Chile to join NAFTA would cause wine prices in the United States to drop.
c. The first priorities of the new regime in the Democratic Republic of Congo (DRC, formerly Zaire) should be to rebuild schools and highways and to provide basic health care
Address the following questions. Remember to cite any sources used, including the textbook (APA format is not required, but it is recommended). Choose a product and supplier from whom you would import the product.
The demand for new homes in the United States is often described as highly cyclical and very sensitive to housing prices and interest rates.
Can you please provide me an example of the company that has made a strategic decision based on productivity and costs.
Select a nation that has a low per capita income and discuss how the catch-up effect would work for that country. Consider the determinants of productivity and explain some of the things that would tend to prohibit or limit that country's ability ..
Which of the following is not a condition required for the practice of price discrimination?
Determine whether your commodity is a necessity or a luxury product. Identify the availability of substitutes for the chosen product and explain how the necessity of a good and the availability of substitutes impact the price elasticity of the prod..
Desired consumption is Cd = 100 + 0.8Y - 500r - 0.5G, and desired investment is Id = 10 -500r. Real money demand is Md/P = Y - 2000i. Other variables are πe = 0.05, G = 200, = 1000, and M = 2100.
Using the mortgage calculator spreadsheet available on VISTA, produce a graph which displays, for each month, the amount of repaid principal (also called normal paydown) and the interest paid when the nominal mortgage rate is r = 5.33% compounded ..
Assume the ratio of deposits that banks hold in the form of reserves is 7 percent. Assume further that people want to hold 8 percent of their deposits in the form of cash.
the buyer values and seller costs for another experiment in which students are buying and selling used textbooks. In this experiment, the seller pays the tax. Suppose that traders who are indifferent between trading and not trading go ahead and trade..
Describe why personalized pricing or 1st degree price discrimination is g enerally more profitable than menu price. Why, if this is the case, do companies use menu pricing?
characterize the long run equilibrium of a perfectly competitive industry in which average costs are U-shaped as output increases, under both restricted and free entry.
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