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Using the Edgeworth box diagram, answer the following:
1. How can one point simultaneously represent the market baskets owned by two different consumers?
2. Why are both consumers' marginal rates of substitution equal at every point on the contract curve in the Edgeworth box?
3. Why is a competitive equilibrium on the contract curve?
4. What does a vertical movement inside the box signify? And a horizontal movement?
Data collected in the imaginary economy of Kharkeez reveals that when the price of a bork increased by 20%, the quantity of bork sold decreased by 30%, and the quantity of perf demanded increase by 15%
Estimate the relationship among inflation,unemployment and business cycle on the industry.
Suppose a bond offers to pay $1000 in one year and currently sells for $900. Given this information, we know that the interest rate on the bond - four components of national income
Suppose that the production function for iPods isQ= 20K0.5L0.5. The marginal product of labor is 10(K/L)0.5, and the marginal product of capital is 10(L/K)0.5. Suppose that labor can be hired for $6, and capital can be rented for $9. If the firm ha..
1. When on the gold standard, to maintain its mint parity value and the value of its currency a nation must condition its money stock on the level of gold reserves it has.
U.S. Treasury securities are auctioned in competitive bidding under rules that are very similar to a Vickrey auction. What is the advantage to the U.S. Treasury of using this type of auction?
Select one of the system development approaches (structured, information, engineering, and object-oriented) and give an example of a business process or problem that would use that approach.
The following is a list of figures for a given year in billions of dollars. Calculate the GDP and NI.
To encourage additional spending on education by local school districts, the state government plans to offer aid. All families are alike in district X and these families determine the amount of money spent on education and on all other programs.
When did mortgage default and housing foreclosure rates begin to rise rapidly? When did the economy go into recession? Was there a causal relationship between the two? Discuss.
Look at some of the news reports on the current election campaigns. State a claim made by a candidate that is an example of the fallacy of false cause. How do economists attempt to avoid this problem
Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain the process by which each of the following government policies will move the economy from one long-run macroeconomic equilibrium to another.
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