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Choose TWO of the following questions to answer, and please indicate the questions you choose.
Assume that the price of wheat [an important input in the production of pasta] has decreased and at the same time, good economic conditions have increased the income of consumers. If pasta is an inferior good, show graphically and briefly explain wha..
Why is the concept of derived demand so important for companies selling products and services to other organizations? What is an example where an industrial company has benefited from changes in end-consumer demand?
What are some of the tools that countries use to restrict trade and why do countries impose them? Can you think of any real life examples? What is TPA? What's at stake with these aforementioned agreements? Do you think that trade restrictions will be..
The long-run aggregate supply curve is influenced by the price level. The opportunity cost of holding real money balances is the: Economic variables that generally turn down after a recession begins and turn back up after the recovery starts are call..
Suppose that a cost minimizing firm with two inputs, capital K and labour L recently increased the quantity of each inputs by 10%.
Consider a perfectly competitive firm with the short-run cost function, C(q) = 500 + 40q + 10q2. At the market equilibrium price P* = 80, what is the profit at its optimal quantity supplied?
What are the distinguishing characteristics of public goods? Give two examples of a public good. Why are public goods difficult for markets to allocate efficiently?
Sandy could take a job paying $10,000 a year when she graduates from high school, or she can go to college and pay $9,000 a year for tuition. Measured in dollars, what is her opportunity cost of going to college next year?
Governments build highways and provide medical care, welfare, border security, schools and education. If the market is such an efficient and beneficial mechanism, why isn’t it universally relied on? Explain
Discuss the influence the decision-making process had on the outcome. Evaluate the effectiveness of the process. What stages were most challenging and why?
What are some examples of e-mail scams (e.g., Nigerian scams, false credit or account alerts, dating scams, etc.)? What is the purpose of such an e-mail attack?
Adam has $38 and he decides to spend on X1 and X2. Commodity one costs $5 per unit and commodity two costs $11 per unit. His utility function is U(X1,X2)= min(3X1,X2). Write down the budget line.
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