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A basic assumption about consumers in microeconomics is that they have preferences over different baskets of goods. Explain the concepts "preferences", "preference order" and baskets of goods. What are the assumptions of preferences?
A country is described by the Solow Model with a production function y = \(k^{1/2}\) where y is output per worker and k is capital per worker. Now suppose that the fraction of output invested (or saved) is 50%. Assume that the depreciation rate is..
Which sectors of the economy have been affected by it most and if there is going to be any long-term economic impact resulting from it?
Suppose the bank in the table below has only reserves and loans on the asset side of its balance sheet, and demand deposits on the liabilities side of its balance sheet. Assets Liabilities Reserves $36,000 Demand Deposits $300,000 Loans.
How many engines will be sold at the swap meet?
What is the effect of this tax measure on investment in the long run (say, after four or five years)?
Calculate consumption in each period of life. Compare this answer to your answer to part (a) of Problem 5, and explain any differences.
1. Use these combinations for parts a and b: Combination Clothes Food A 1 basket 1 pound B 1 basket 2 pounds C 1 basket 3 pounds D 2 baskets 1 pound E 2 baskets 2 pounds F 2 baskets 3 pounds G 3 baskets 1 pound H 3 baskets 2 pounds I 3 baskets 3 p..
n a given day, once you subtract 8 hours for sleep, you effectively have 16 hours from which you can choose to work or enjoy leisure (that is to say, sleep doesn't count as leisure). You have a job that pays $20/hour and that is your only source o..
The labor hours required to produce one unit of wheat in the United kingdom 2. The labor of producing one unit of wheat in the United states is 1. What is the opportunity cost of producing a unit of wheat in the United kingdom
What is the risk (standard deviation) that this investment manager has assumed in his calculation if it is known that returns are normally distributed with a mean of 5.6%?
Evaluate the relative importance of economies of scale and comparative advantage in causing the following
Part of the policy response to the crisis was an extension of the length of time that an unemployed worker could receive unemployment benefits. How would you predict this change would affect the proportion of those unemployed more than six months?
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