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1. What is product differentiation.
2. List all the advantages and the disadvantages of product differentiation.
Draw indifference curves to represent the following types of consumer preferences-I like peanut butter, but neither like nor dislike jelly.
Suppose we draw an indifference map diagram to explore the hours of work a worker will choose to do. Which of the following will not apply to this diagram? a) The indifference curves slope downwards to the right because both income and leisure are ..
Do you think banks can self regulate themselves? One would think that they should be held accountable for their mistakes but as we have seen, Uncle Sam came to rescue many of the banks for certain bankruptcy.
What is the equilibrium level of income and derive the savings function and find the level of savings in this economy
If a firm had everywhere increasing returns to scale, what would happen to its profits if prices remained fixed and if it doubled its scale of operation?
Assume as a professional economist debate about the wisdom of pursuing discretionary fiscal policy.
Which economic system is best suited for handling a crisis of epic proportions (hurricane, flood, blizzard, forest fire, etc.)? Why? Describe and explain why a socialist system might be
E;lucidate whether each among the subsiquent is an example of an automatic fiscal stabilizer.
Economics 714 Macroeconomic Theory Spring 2016 - Problem Set 1. Let the Pareto weight on consumer 1 be λ ∈ (0, 1) and the weight on consumer 2 be 1 - λ. Compute the Pareto optimal allocation. Define a competitive equilibrium for this economy (with tr..
A welding machine that costs £4,600,000 is expected to have a life of 5 years and a scrap value of approximately £300,000. Depreciation is first calculated on the basis of the equal installment method.
Assume that the exchange rate between the Canadian dollar and the Euro is 2 Euros per Canadian dollar.
Raising chickens requires several types of feed, such as corn and soy meal. Consider a farm in the former Soviet Union. Try to describe how dicisions on the number of chickens to be raised, and the amount of each feed to use in raising them, were ..
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