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What type of economy is an economic system in which private businesses can operate freely with minimal state control?
Prices (fuel, water, grocery items, etc.) tend to rise in response to a natural disaster.
Discuss Daniel Kahneman’s Mckinsey interview, and the message he delivers in regards to the risk involved in using inside information (one of the persistent problems in decision theory – with numerous recent examples, including the Financial Crash of..
Assume the average value of P is $ 3 and the average value of Po is $ 6. Illustrate what is the price elasticity at the average values of P and Po.
Illustrate what entity establishes a cost ceiling and does it require government sanction for violators. Will it result in a surplus or a shortage.
The asset (liquidity preference, or speculative) motive/demand for money relates primarily to money’s medium of exchange function. A Keynesian would view expansionary monetary policy as having its impact primarily through its effect on interest rates..
Does it matter if a central bank (Fed in US) is independent of the government? Why do you think that matters? What would happen (or likely to happen) if Fed was not independent of the US government? Can you think of any country that their central ban..
Instrumental variables:
About one out of every ten dollars of federal government spending goes toward interest on the national debt. Over one out of every three dollars of federal tax revenue comes from social insurance receipts. The most important source of local tax reven..
Compared with perfect competition, quantity produced in monopolistic competition is inefficient as price is higher than marginal cost (i.e. allocative inefficiency). Why do some economists argue that even if price is higher than marginal cost, it doe..
How can having panel data (with T=2 and n sufficiently large) help solve the omitted variables problem if the omitted variables are time invariant (don’t vary over time)?
The daily cost of producing pizza in New Haven is C(Q) = 4Q + (Q2/40); the marginal cost is MC = 4 + (Q/20). There are no avoidable fixed costs. What is the market supply function if there are 10 firms making pizza? If 20 firms are making pizza? What..
An engineer must recommend one of two machines for integration into an upgraded manufacturing line. She obtains estimates from two salespeople. Salesman A gives her the estimates in future (then-current) dollars, while saleswoman B provides the estim..
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