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Question: For example, can we test the basic premises of (neoclassical) economics, let's say firms are profit maximizers? If so how? If not, then should we reject the theory? 2- Friedman (1953) states that "the theory should be evaluated not by the realism of the assumptions, but by its predictive power for the class of phenomena it aims to explain"... What is Hausman's view on this discussion?
Movie attendance dropped 8 percent as tickets prices rose a little more than 5 percent. What is the price elasticity of demand for movie tickets? Could price elasticity be somewhat overestimated from these figures? That is, could other things have ch..
Describe how the market will react to the introduction of a statutory minimum wage. indicate what the likely effect would be on the unemployment situation
Suppose people in our overlapping generations model have the opportunity either to hold fiat money with complete safety or to lend someone who may never repay.
What is the budget line equation - what is the slope of the budget line equation and what is the opportunity cost of one more candy bar?
around the world commodities are bought and sold on exchanges markets organized in a specific location where buyers and
What is the optimal level of output for your company to produce/sell? What is the marginal revenue from the last unit sold?
At what value of MC will there be no exports? Take a picture of this situation and paste it in your Word document. What can you conclude about the effect of the number of firms on PS from a merger to monopoly (from the cartel)?
A newspaper article once reported that the U.S. economy was experiencing a low rate of inflation. It said that "low inflation has a downside.
Research the current exchange rate for two countries of your choice that you believe would be good places to conduct business. Be prepared to discuss.
Suppose that due to a new government study, consumer preferences for chicken suddenly increase. In the model of consumer theory, this would be represented by, During the 1990s, some countries lifted price ceiling on eggs.
Greg and Tanya Ridpath have two children, ages 6 years and 5 months. Their younger child, Ray, was born with a congenital heart defect that will require several major surgeries in the next few years to fully correct. Greg is employed as a salesperson..
Are there, in general, any problems with the application of cointegration techniques to money supply functions, or with the interpretation of estimates? Can these estimates be relied upon? Discuss.
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