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Regarding the Lorenz curve and you are waiting for the state's demographers office, how would you (1) describe and explain a Lorenz curve and (2) how would you describe and explain how a Lorenz curve is constructed? Using economics concepts, terms and methods, be sure to answer both parts of the question.
Suppose that a consumer is currently spending all of her income on 10 units of goods A and 5 units of goods on B. The price of A is $4.00 per unit, the price of good B is $10.00 per unit, the marginal utility of the last unit of good A consumed is 20..
Assume company X deposits 100,000 in cash in Commercial Bank A. If no excess reserves exist at the time this deposit is made and the reserve ratio is 20%, Bank A, by itself, can initially increase the money supply by a maximum of?
Assuming that the real costs of college education are lower now than at the turn of the century and that these costs are lower for persons of higher ability, construct an explanation for why banks might have raised their hiring standards.
There is an OPEC cartel that reduces the production of world oil by several million barrels a day. Which of the following correctly captures the effect of this change on the market for gasoline?
Thinking back to the business cycle discussion, how would Keynesian economists explain the performance of the economy during the last few years? Show graphically using the AD/AS model, and explain your reasoning. Next, how would neoclassical economis..
Based on the following information: A and B. Their cost functions are defined below, respectively: CA = 10000 + 10QA + 0.5QA2 and CB = 12000 + 10QB + 0.5QB2. The firms face the following market demand curve: P = 610 – Q, (where Q = QA + QB). If the f..
Assume the economy has flexible exchange rates and perfect capital mobility. Use the IS-LM-UIP diagram to show the changes in output, the interest rate, the nominal exchange rate, and the trade balance,
______Within organizations, purchasing is also referred to as
What is opportunity cost of cheese in France at 2 kilograms to Germany 1 kilogram? Which country France or Germany has comparative advantage in cars at France .25 and Germany .50 output per hours worked? And cheese France 2 kilograms, Germany 1 kilog..
Starting with a positive output gap where aggregate demand is at a level less than full employment, assume that the annual Real GDP growth rate is equal to 2.5% and the annual supply side growth rate is equal to 2.5%. As a result:
When Ajax co. Produced 3 units of output per week, its total fixed cost was $100 and total variable cost was $45. When output increased to 4 units per week, total fixed cost remained at $100 and total variable cost increased to $65.
Suppose, in our efficiency wage model, we have q=2/3; E, the cost of working hard, is 2; the MPL is constant, equal to 30, and the labor force is 100. Find the equilibrium unemployment rate. Find the return to shirking and the return to non-shirking ..
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