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What is economics and what are the basic economic questions? 'Market society answers these questions using price signals and free interaction in the market.' What are the social outcomes which market economy claims to provide? (briefly explain each of them.)
In California, a welfare recipient can earn $225 without having benefits reduced. Beyond $225, benefits are reduced $.50 for every dollar of earnings. Consider Elizabeth, a resident of California, who can earn $10 per hour. If she does not work at al..
Does your firm have a dominant strategy? Does firm 2? If so, indicate what this strategy is for each. Given b., find the Nash Equilibrium outcome (actions, payoffs) for the one-time interaction.
_____ is NOT a characteristic appropriate for a yield management strategy.
Why do classical economists and Keynesian economists agree on the long-run effects of a fall in aggregate demand but not on the short-run effects?
Suppose you borrowed $10,000 at an interest rate of 12%, compounded quarterly over 36 months. At the end of the first year (after 4 payments), you want to negotiate with the bank to pay off the remainder of the loan in 4 equal semi-annual payments. W..
The initial cost of constructing a permanent dam (i.e., a dam that is expected to last forever, perpetuity) is $425 million. The annual net benefits will depend on the amount of rainfall: $18 million in a “dry” year, $29 million in a “wet” year, and ..
Why as a result of rise in exchange rate, the amount of imports fall but not as much as it does when the supply is perfectly elastic.
If the government imposes a tax on the production of cars, which of the following will occur in the market for cars.
The marginal rate of substitution (MRS) determines the rate at which a consumer is willing to substitute between two goods in order to achieve.
If you were macroeconomic policymaker, how do you balance the short-run trade off between inflation rate and unemployment rate? Explain. What is the historical relationship between rates of unemployment and inflation in the U.S. economy? What are the..
How does Supply and Demand play a role in economic thinking? What factors influence economics that don't directly relate to it? How does public choice economics influence the market?
Illustrate what was the growth rate of the GDP deflator between 1999 and 2000.
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