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Q1. Mark consumes only cookies and books. At his current consumption bundle, his marginal utility from books is 10 and from cookies are 5. Each book costs $10, and each cookie costs $2. Is he maximizing his utility? Explain. If he is not, how can he increase his utility while keeping his total expenditure constant?
Q2. In the country of Sildavia, a market basket of goods and services cost $ 130 in 2003, $ 140 in 2004, and $160 in 2005. Based on this information and considering 2003 as the base year, inflation from 2003 to 2005.
By what percentage would GDP be boosted if the value of the services of stay-at-home spouses were included in GDP
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
Assume the price elasticity of demand for heating oil is 0.7 in the long run also 0.2 in the short run.
This is an essay question, but I don't know how to explain. Should I use the supply-demand curve to explain, or use the marginal cost- marginal revenue curve to explain this question.
Explain why sharp decline in oil prices might not necessarily have positive or negative impact.
The 2001 recession ended in November 2001, but the perception of "bad economic times" lingered into 2002 and 2003. What evidence do these graphs provide concerning the lingering perception of a recession.
As vice president of sales for a rapidly growing company, you are grappling with the question of expanding the size of your direct sales force.
Identify your fixed and variable costs at your fast food restaurant, and explain the changes to each of these costs, given the increased demand.
Explain why the R-squared from the regression from F test will always be at least as large as the R-square from the BP regression.
As before pleasing the job, you admit a surprise offer from a competitor. Elucidate how much producer surplus have you earned, if you actually earn $2600 during the month.
MMM expects to generate $60,000 in earnings that will be retained for reinvestment in the firm this year.
How many units of good X will be purchased when Px=4910, determine the inverse demand function for good x.
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