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Gene has the following utility function: U = XY + 2Y, the Px = $4, the Py = $1 and I=$6.
a. Find Gene’s MRSx,y
b. Is the MRSx,y increasing, decreasing, or constant with respect to X?
c. What is the slope of the budget constraint?
d. Find the optimal X and Y.
e. At the optimal X* and Y* calculate and interpret the MUx/Px & MUy/Py.
A good stock-based mutual fund should earn at least 8% per year over a long period of time. Consider the case of Barney and lynn, who were overheard gloating (for all to hear) about how well they had done with their mutual fund investment.
If each nation grew at a constant rate over these years, in which year did the U.S. overtake the U.K. in terms of average income.
In the post war period, a country could increase the national saving rate and therefore: The depreciation rate in United State is about 4% and population growth rate is 0.9% in 2012 and the technology growth rate is 2.1%. According to the Solow model..
There are 2 fishermen, Zach and Jacob, who fish along a certain coast. Both would benefit if lighthouses were built along the coast where they fish. The marginal cost of building each additional lighthouse is $25. The demand curves for lighthouses ar..
Draw a graph that shows the marginal revenue product curves of the two franchises. Make sure your axes are properly labeled. Show the equilibrium level of competitive balance and the equilibrium level of player salaries.
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In this table below, Agoira moves from a command system to a market system
Evaluate the relative importance of economies of scale and comparative advantage in causing the following.
In fact, an insurance agent explains that he is always true. Nevertheless, the engineer buys fire insurance. Explain why this is or is not a logical decision.
Draw a supply- demand diagram of the federal funds market and show the effects of a Federal Reserve Purchase of $85 billion in US Treasury Notes during a Quantitative Easing Campaign after the Fed has already lowered its Fed funds target to 0 - .25%.
When cyclical unemployment increases and other things remain the same, ______. The U.S. labor force participation rate ______.Withdrawals move from employed to not in the labor force. people who voluntarily quit their jobs are colled job leavers.
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