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Suppose your friends, Mary and John, received their first credit cards with identical features. Mary uses her card extensively to make purchases, always paying the full balance in a timely manner so that she incurs no interest cost. John pays for everything in cash, reserving the credit card only for an emergency that never happens. After two years, your friends apply for a new credit card. What are some of the reasons why Mary might be offered a new card at a much lower interest rate than John, despite the fact that they have similar jobs and make the same amount of money? Refer to Understanding Credit Utilization and 5 Factors That Determine Your Credit Score to learn more.
1. In judging the efficiency of hospitals would it be sufficient to just compare the cost per patient day, with the lowest cost hospital being the most efficien
Evaluate trade barriers Why do countries impose trade barriers? What is the effect of trade barriers on the trade balance, the employment, and the economic
Suppose that the household’s preferences are represented by the utility function U(C0, C1)= 100C0^ 0.5 C1^0.25. If the real interest rate is 5 percent, what is the value of the MRS of this household when it has maximized its two-period welfare?
Is someone who is using a cellular phone more likely to be involved in a traffic accident? What is your conclusion from the following sample information?
Are property rights necessary for long-run economic growth? Are property rights sufficient for long-run economic growth?
Compute the quantity of good X demanded for the given values of P, M, and PR
Barney’s snow removal service is a profit-maximizing, competitive firm. Barney clears driveways for $10 each. His total cost each day is $250, and half of his total costs are fixed. If Barney clears 20 driveways a day, should Barney operate or shut d..
Consider a monopolist that produces a good at a constant marginal and average cost of 5$. The market demand is given by p=53-Q. find the deadweight loss and the consumer surplus and the elasticity of demand (absolute value) at the optimal output
A market is made up of two consumers. The first has a demand P(1) = 1200 – 3q and the other has demand P(2) = 1200 – 6q. There is one firm in the market acting like a monopolist with costs = Q^2 + 90,000. Assume the firm can perfectly price discrimin..
q.price comparison services on the internet as well as shop bots are a popular way for retailers to advertise their
Using a simple model of the expenditure sector without any government involvement, explain the paradox of thrift that asserts that an increased desire to save may not lead to an increase in actual saving.
Chrissie's demand for chachkies (a private good) can be expressed as P = 400 - 20 Q. John's demand for chachkies can be expressed as P = 100 - 5Q.
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