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1. You have a dozen shirts and your roommate has six pairs of shoes worth roughly the same amount of money. You decide to swap six shirts for three pairs of shoes. In financial terms, neither of you gains anything. Explain why you are nevertheless both likely to be better off.
2. In the eighteenth century, some writers argued that one person in a trade could be made better off only by gaining at the expense of the other. Explain the fallacy in this argument.
Distinguish between short-run and long-run aggregate supply and discuss the import-ance of this distinction for macroeconomic policy.
System administrators have unrestricted access to the tables. Describe processing rights that you think would be appropriate for this situation. Use Figure 6-16 as an example. What problems might this security system have?
What isthe effective mortgage yield for borrowing this mortgage.Now suppose that there is an annual interest rate cap of 2% specified in the loan contract. What isthe effective mortgage yield for borrowing this mortgage, assuming that no negative amo..
A factory produces output (Q) using capital (K) and labor (L) according to the production function Y(K,L)=K^1/5*L^4/5 Let r denote the price per unit capital, and w denote the price per unit labor, so that the total expenditure on these factors is ..
Which is the three evaluation techniques that you computed (i.e., payback period, IRR and NPV), should the firm use to make its decision of whether or not to accept this project? Why? Is one of these techniques better than the others and if so, wh..
Explain the implications for the disturbance terms in (1) and (2) if (3) is the correct specification and wt satisfies the Gauss-Markov conditions. What problems, if any, would be encountered if ordinary least squares were used to fit (1) and (2)?
Begin a response to this statement with your assertion - Agree or Disagree - then provide reasoning to support your assertion.
suppose the marginal cost of a television is $100 the annual demand for the television set its given by the equation Q=200,000-500(p) question: suppose television sets are banned calculate the loss in consumer surplus as a result of this action
Suppose two firms 1 and 2 compete in quantities and face a demand curve p = 100 - q. Suppose firm 1 has a constant marginal cost of 10 while firm 2 has a constant marginal cost of 40. Suppose they produce quantities simultaneously.
Assume now that a lump-sum tax is imposed such that the government collects $10 billion in taxes at all levels of GDP. Graph the resulting consumption schedule and compare the MPC and the multiplier with those of the pretax consumption schedule.
What are the consequences of wide fluctuations in exchange rates between currencies as in this case? How do these changes particularly impact a charitable organization?
Baby boomers can save up to $22,000 per year in a 401k account. If Eileen's starting balance at age 50 is $200,000 and she saves the full amount available to her, how much money will she have saved when she is 65 years old (after 15 years of savin..
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