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Suppose Mary enjoys Pepsi and Coke according to the function U(P;C) = 4C + 5P.
1)What does her utility function say about her MRS of Coke for Pepsi?
2)What do her indi§erence curves look like?
An engineer wishes to have $5 million by the time he retires in 40 years. Assuming 15% nominal interest, compounded continuously, what annual sum must he set aside?
illustrate what happens to total income when the price of milk is increased.
He proposed an rise in ethanol produced from corn and stalks and leaves from corn and other grasses. What is the likely impact of these two events on food prices in the United States.
Elucidate unequivocally why the foundation of trade has nothing to do with absolute advantage and only the law of comparative advantage is relevant.
Mastering the economic way of consideting means learning to reason in terms of supply and demand. Here are additional questions on which you can practice.
Do you think that the World Bank is orientating its action in a right way or not and if not, any ideas of how to redefine its action.
Illustrate the similar price elasticity of supply, sellers would be able to pass along the smalles portion of a 10%tax on which item.
If average variable price are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed price cut on total profits.
Suppose that the economy is thought to be 2% above potential (that is, the output gap is 2%) when potential output grows 4% per year. Suppose also that the Fed is following the Taylor rule, with an inflation rate of 2% over the past year.
Most Social Security recipients do not currently pay federal or state income takes on their benefits. Assume the government proposes to tax these profits at same rate as other types of income.
What is the amount of the difference between the maximum premium and AFP, and what is this called?
Monetary Policy action on the Investment Market - Show the result of this Monetary Policy action on the Investment Market and the Goods and Services (AS/AD) Market.
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