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Q1. Bob consumes two commodities: x and y (say, chocolate and classical music). More y never hurts, but in order to enjoy y he has to consume at least 4 units of it; put differently, he starts to enjoy y after the fourth unit. (In order to appreciate y he must first develop a taste for it.) Regardless of the amount of y he consumes, Bob thinks that more x is always strictly better than less. Moreover, he (strictly) prefers the bundle (x,y) over (x', y'); where both y and y' are at least 4, if and only if x *y > x'* y'.
Q2. Bob has an income of $100. The price of x is $1, and the price of y is py. For what values of py will Bob buy y, and for what values of py will Bob buy only x?
The Australian government administers two programs that affect the market for cigarettes
Numerous times in the lectures labelling the vertical axis as euro per $ and the initial supply and demand curves labelled with 12/07, Label this initial point as point A.
On one hand, the WTO's role in international trade is becoming more significant. On the other hand, its verdict on the Brazil's Embraer versus Canada's Bombardier case did not seem to solve the problem.
Explain how the short-run Phillips curve, the long-run Phillips curve, the short-run aggregate supply curve, the long-run aggregate supply curve, and the natural rate hypothesis are all related.
Disposable personal income equals personal income and two factors are the keys to determining labour productivity
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
Determine the quantity demanded, the quantity supplied, and the magnitude
Indicate if GDP is affected, under what category and what happens to GDP Oklahoma cleans up after a devastating tornado.
Under oligopoly, if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.
Calculate Marginal Revenue from demand if the marginal propensity to save is 0.05, how large is the multiplier.
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
Mining is proposed for a wilderness area that provides two benefits: recreation due to backpacking opportunities and biodiversity there are endangered wildlife and plants.
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