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There are two players. Players move sequentially starting with player 1, followed by player 2, followed by player 1 again etc. Each time that a player moves, she can choose a number from the set {1, 2, 3, 4, 5, 6, 7, 8, 9, 10}. The first player who brings the sum of all chosen numbers to a total that is weakly larger 100 wins the game. Who wins the game in subgame perfect equilibrium? Explain.
A flat tax plan allows individuals to deduct a standard allowance of $10,000 from their wages. Assume that the flat tax rate is 12%. Calculate the amount of income tax and the average tax rate if you were earning: $30,000 a year $60,000 a year
Classify each of the following statements as positive or normative. Explain. Society faces a short-run trade-off between inflation and unemployment. a reduction in the rate of money growth will reduce the rate of inflation. The Federal Reserve should..
How does Supply and Demand play a role in economic thinking? What factors influence economics that don't directly relate to it? How does public choice economics influence the market?
In this table below, Agoira moves from a command system to a market system
An outside firm can make components according to the cost function TC=1m + 10Q. Suppose it typically produces 10m units. What is this firm’s cost per unit? Suppose that your firm is able to buy components at this cost per unit. If you order 1m units ..
1 which of the following is not a high energy density source of energya solar energyb nuclear energyc all of the
Assess the role of the Federal Reserve in mitigating the negative impact of the 2008 financial meltdown on the economy.
As the level of competition in an industry increases, the price-cost margin approaches:
Henry initially consumes the quantity of pens and pencils shown as B in figure 2. After the prices of both goods change, he buys combination A. From figure 2 and these facts, it must be true that . . .
Prove the following: if a matching is efficient, then there exists a tie-breaking rule such that the matching is efficient (with respect to the strict preferences generated by the tie-breaking rule)
Elucidate the evidence that supports these recommendations and how your recommendations might need to be modified for the alternative economic futures
Cost Minimization for Cobb-Douglas. Suppose the Acme Gumball Company has the production function of q=LK. Given that the MPL=K, MPK=L and MRT S=MPL/MPK. Suppose wage rate is w= $5 and rental rate is r= $5. What is the cost-minimizing combination of L..
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