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A friend is getting married and she comments that everything about the wedding industry from buying a wedding dress to picking out flowers to arranging a wedding reception, all of the costs are unclear at the outset and can end up surprisingly expensive. Naturally, this appears beneficial to firms in the industry. Putting yourself in the shoes of an economist, why is this the case? What information asymmetries, price discrimination opportunities or other market characteristics explain this situation? (e.g. Why haven't natural market forces, the power of internet or other factors impacted this industry much? What is special about this industry?)
Suppose the spot Yuan\dollar exchange rate is 6.69. Sue a Chinese national, has 10,000 Yuan that she wants to invest in a U.S. asset that promises an annual interest of 7 percent. If the expected exchange rate (Yuan/dollar) after a year is 7.3, how m..
The discussion of the multiplier in the last chapter shows how a change in autonomous spending increases real GDP by a multiple of itself. For example it the multiplier is 4 and the change in autonomous spending is $100, and then the real GDP is $400..
Find the total industry output and the number of firms in the market. How much economic profit does each firm in this market make?
The Bureau of Labor Statistics reported the consumer price index as 90 in December 2009 and 100 in Decemb
Next write about the situation at hand and what is involved. Then do a SWOT analysis of Cirque Du Soleil. Then give your suggestions to improve Cirque Du Soleil's business in the global arena. Why do they export to the international locations they se..
Adam Smith favors a policy of laissez faire in managing economic activities. Why? Economics deals with the efficient use of resources? Why? Marginal analysis tends to produce more optimal outcomes when working with scarce resources. How?
How many ways can a student select five questions from an exam containing 12 questions, if one of the five must be the last question?
The rancher who owns the land is willing to sell the land for 2 million. Should the government proceed with this project (with no end date), assuming that annual benefits are steady at 110,000 per year? The interest rate is 4 percent.
What would happen to the demand curve of frozen apple juice if: An increase in the price of frozen orange juice, considered by many consumers in the United States as a good substitute for frozen apple juice.
What is the demand curve faced by an average Jose's taco emporium? What is price point elasticity for Jose's tacos? What is cross price elasticity of demand faced by a typical Jose's taco emporium?
If an economy were experienceing a high rate of unemployment as the result of weak aggregate demand, The time period between when economic conditions change and when policy makers are aware of the change is called the
Now take a Rawlins view and assume that the social welfare function is the level of utility of the individual with the lowest utility level. Using the data from Problem 1, and again assuming there are eight oranges, what is the social welfare associa..
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