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When the quality of medical services rises, what happens to the demand curve for that service? What if quality increases in ways that are unobservable to the consumer, such as a reduction in the probability of adverse side effects?
If the government were to make university attendance mandatory and subsidize tuition costs with tax dollars, how might this affect a nation's economic growth?
Convert the production function into its normal form. Illustrate what is the MRTS, if price of labour is $120 and the price of capital is $200?
In a two year setting Rod has earnings of $ 8 000 this year and earnings of $ 25, 0 00 next year. He can borrow or lend at an interest rate of 25%. Draw his budget line including endpoints. What is the slope of the budget line? What is the inter pret..
Increasingly, employees are being allowed to choose benefit packages from a menu of items. For instance, workers may be given a package of benefits that includes basic and optional items. How do you think flexible benefit packages would affect an emp..
Draw an indifference map for a typical person’s preferences over five-dollar bills and tendollar bills using the vertical axis for five-dollar bills and the horizontal axis for ten-dollar bills. What is the marginal rate of substitution (MRS)?
For each of the following, predict the effects on the equilibrium levels of aggregate output (Y) and the interest rate (r). Be sure you make predictions for both Y and r! During 2000, the Federal Reserve was tightening monetary policy in an attempt t..
Mexican interest rates are normally substantially higher than U.S. interest rates. a. What does this imply about the inflation differential (Mexico inflation minus U.S. inflation), assuming that the peso interest rate is the same in both countries? D..
Describe the many ways the government affects economic activity. Explain the positive aspects of this government involvement. Now, explain the negative aspects of government involvement. Finally, describe to what extent you believe the government sho..
Explain the dual objectives of the Federal Reserve when dictating that nation’s money supply. Given these, explain whether the Federal Reserve has been successful in achieving the objectives over the last 15 years.
A firm sells diving masks to two market segments. Segment A has a demand curve given by P = 80 – 2 QA, while Segment B has a demand curve given by P = 60 – (1/2) QB. The firm has fixed costs of $300 and a constant marginal cost (MC) of $16. Calculate..
The setup cost is $100 per order up to 99. For orders of less than a pallet, the setup cost is $200. The setup cost for pallet loads is $1000. The holding cost is 1% of the purchasing cost per item per week.
Suppose that product prices start rising but nominal wages do not. In that case,
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