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What are the determinants of demand? What happens to the demand curve when any of these determinants change? Distinguish between a change in demand and a movement along a fixed demand curve, noting the cause(s) of each.
Is the perfectly competitive model a good benchmark for an economic system which uses Biblical worldview? Use Scriptural support where appropriate and also comment on the perfectly competitive model as a guide for public policy. What should be the ro..
The Laspeyres price index uses the old quantities for the weights. In the base year, good 1 cost $2 and good 2 cost $1. The current price of good 1 is $7 and the current price of good 2 is $2. In the base year, the consumption bundle was (x1b,x2b) = ..
As soon as she graduated with an enginering degree and started working, Jamie bought a car for $40,000. A down payment of $10,000 was paid by her dad as graduation gift. The rest of the amount was financed with Generous motors at 3% nominal interest ..
The multiplier, or the change in equilibrium GDP that will occur per any change in spending, can be determined by calculating the fraction of any change in income that survives all of the leakages and goes on to start the next round of spending.
Consider a product that has a cost function: c(y) = 20y+25. Demand for this product is represented by the demand curve: y=1/b*(A-p). Note that this is equivalent to the inverse demand curve: p = A-by. Use the envelope theorem to determine wheter the ..
How does monopolistic competition differ from pure competition in its basic characteristics? How does it differ from pure monopoly? Explain fully what product differentiation may involve. Explain how the entry of firms into its industry affects the d..
Outline and describe in order of sequence the key items that led to the War of Independence. Explain why the navigation laws were so important to England. Explain the whys of the policy of salutary neglect.
Lane is responsible for reviewing the standard costs. While revieweing the standard for the coming year, two ethical issues arise.
What are the equilibrium level of income and the equilibrium interest rate?
Sally quit her job as a CFO where she was earning $50,000 per year to start her own financial consulting firm. She converts a building that she owns, which was previously rented for $12,000 per year, into an office.
Suppose that a firm, faced with constant input prices, recently increased the quantity of each of inputs by 10 percent. As a result, its output increased from 100 units to 120 units. Indicate whether each of the following statements is true, false or..
The pessimistic value of $24 has a probability of 0.3, and the optimistic value of $38 has a probability of 0.2.
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