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Clancy and Eileen are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of their land and corn on the rest.
If consumers perceive several goods to be homogeneous, they believe the goods to be,
Assume that private schools want to maximize profits and that the market for private schools is perfectly competitive.
There are many brands of laundry detergent, all equally effective. Would you expect the elasticity of demand for any particular brand to be high or low? Explain.
Explain why physician groups and health service workers’ unions prefer stricter licensure requirements rather than cost control efforts from legislators. What are the most difficult aspects of the Coase Theorem in solving a problem like spread of a d..
How does an increase in the saving rate affect the break even and actual investment curves in the Solow model? Use graphs also.
The wheat harvesting season in the American Midwest is short, and most farmers deliver their truckloads of wheat to a giant central storage bin within a two-week span. It will cost $200,000 to enlarge the bin during off-season. How long will it take ..
Illustrate what is happening to the value of the US dollar these days. What causes the value of the US dollar to rise or fall.
Should the antitrust authorities stop more corporate mergers than they currently do? What are some of the pros and cons?
If the government announced that they were going to reduce the income tax next year, financed by finding a large and previously-unknown warehouse of real goods. What would happen to labor? To consumption? If the government announced they were going t..
Keeping your money in a bank seems like a good idea. However, from time to time, depositors lose confidence in banks (this happened in summer of 2012 in Greece). If your bank was experiencing a run, would you join in, or would you be confident that t..
Medium household income in County C is $54,021. Medium household income in Country D is $28,739. In County C, 17.4 percent of residents smoke. In County D, 28.4 percent of residents smoke. What is the arc income elasticity of demand for tobacco use?
A 4-year annuity of eight $8,200 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. a) If the discount rate is 14 percent compounded monthly, what is the value of this annuity five years from now? If th..
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