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Participate in a discussion with your classmates regarding a student’s CPI. Review the “EYE on Your Life” caption titled, A Student’s CPI, on page 183 in the textbook. Now that we have learned that the CPI shopping cart is filled with the items that an average urban household buys, discuss and share with your classmates why rent, textbooks, and tuition are the main items whose prices rose faster than average. Please apply the CPI concepts, limitations, and biases as explained in the textbook when sharing your discussion.
John buys shoes for $1 a pair and socks for $1 a pair. His annual income is $20. Now suppose the government institutes two new programs: first, it taxes shoes, so that shoes now cost John $2 a pair. Second, it gives John an annual cash gift of $10. ..
q. in the early 1980s new legislation allowed banks to pay interest on checking deposits which they could not do
Changing the ownership of the ocean from common property to private property would
How do the “rules of the game” help determine who will be poor and who will not? (Hint: How did the Civil Rights Act of 1964, which forbade discrimination on the basis of race, likely affect the incomes of African Americans compared to the incomes of..
What will happen to the marketplace for debit-card transactions and Visa's profits in the long-run. Use graphs to support your analysis and briefly explain your graphs.
The discount rate for the stock is 15% and the rate of return on reinvested earnings is also 15%
Capital mobility is fairly low, so the Fe curve is less shallowly sloped than the LM curve. The currency floats. What will happen if the country pursues than the LM curve. The currency floats. What will happen if the country pursues an expansionary f..
Calculate the MRS or the marginal rate of substitution between X and Y. How much X and Y will Sam buy to maximize his utility given his budget constraint and the prices of X and Y?
Assume only two countries, China and the US. If China decides to stimulate growth through a policy of running a large export trade surplus, does China’s national saving increase? Show the relationship between China’s national savings, domestic invest..
Let’s say that we estimate the following regression where colli is a dummy equal to 1 if individual i went to college and 0 otherwise and disti is the distance in miles for individual i to the nearest college when i grew up. How do you interpret the ..
Determine optimal number of plants that firm should have to take full advantage of market demand. Compare firm's profit with multiple plants with its profit with a single plant.
A deposit of $3,000 is made in a savings account that pays 7.5 percent interest compounded annually. How much money will be available to the depositor at the end of 16 years?
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