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One of the economic principles is that there is a trade-off between efficiency and equality. If we want to reduce food prices so that more people can afford to eat healthily, offer one reason why this might reduce efficiency.
The law of diminishing marginal utility states that:
Suppose that medical researchers discover a new drug which slows the aging process allowing the average life span in the United States to increase to 95 years of age. The lifecycle hypothesis suggests that
Eastern Hydra system which is manufacturing motorcycle engine budgeted 75,000 per year to pay for certain parts over the next 5 years. If the company expects to spend 15,000 in year 1, how much of uniform increase each year is the company expecting i..
European Commission’s preference for a common competition policy is given by the following function: P=1−X, where P denotes price, and X denotes the level of spending allocated to such policy. Draw a diagram in which you illustrate the preferences of..
Victor Finick likes to have the same amount of x as he has of y. His utility function is U(x, y) = min{2x - y, 2y - x}. a. Draw the indifference curve for Victor that passes through the bundle (0, 0) and the indifference curve that passes through (4,..
Suppose that Canada decides to peg its dollar ($C, or the loonie) to the U.S. dollar at an exchange rate of $C1 = $US1. If the U.S. IS curve shifts to the left, will there be pressure for the Canadian dollar to change in value against the U.S. dollar..
The original cost of a certain asset is $1,180. It has to be replaced (at this cost) every 4 years; the salvage value is negligible. Annual revenues and expenses are expected to be $435 and $366, respectively, over an indefinite period of time. The i..
Suppose you plan to purchase a Ford Mustang and need a car finance of $12,000. You take the loan from the K-State Credit Union at 3.5% interest rate. What is the yearly payment to the bank to pay off the loan in 10 years? Please do not just write the..
Besides your pricing decisions, what are your suggested nonpricing strategies? What nonpricing strategies will you use to increase barriers to entry?
A monopsonist faces a labor supply curve given by LS = −300 + 0.01w , where w is the annual salary. What is the lowest salary the firm can pay yet still induce one worker to want to work for the firm? What is lowest salary the firm must pay to induce..
How do the political, economic, and legal enviroments of a country affect international trade? What factors make a country favorable for doing business? What changes have occured in the political economy of most of the world's nation-states since the..
Assume interest rate levels rise to the point where such bonds now yield 12 percent. Illustrate what should the U.S. Congress also the Federal Reserve do about it.
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