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Suppose a consumer is trying to make a choice over the consumption of two goods: x and y. Px = 3, Py = 4 and the income is equal to 50. Assume that the government distributes some stamps that are good to buy 5 units of good x.
Write down the formula for the budget constraint, and what happens if we allow for the stamps to be traded at a price equal to 1.
Who has the same preferences as Bill?. Who has the same indifference curves as Bill? Explain why the answers to (a) and (b) differ.
Wealth holders around the world reacted to the Greek Debt Crisis by selling European financial assets and buying U.S. financial assets. Explain why their action changed the exchange rate between euros and dollars. Did their action strengthen or weake..
Explain the basic distinction between microeconomic analysis and macroeconomic analysis.
Do the following variables have a positive, negative, or roughly zero correlation in a cross- section of countries: GDP per capita and the number of books published (hard copy + electronically) per capita?
Housing becomes public good when it is non-excludable and non-rivalrous; that is, the use of others does not reduce the availability and that people cannot
Discuss and explain the following questions using knowledge about the dynamics of Aggregate Demand and Aggregate Supply Model. What is the cause of the 2007-09 Great recession? What happened to aggregate demand and aggregate supply model during this ..
Demand and supply in the wheat market are given by: (a) Find the equilibrium price and quantity.
There are two types of coal mines in operation: “above-ground” mines, which involve very little risk to the miners, and underground mines, which are considerably more dangerous. What would be an economist’s estimate of the value of a statistical lif..
Thatcher Corporation's bonds will mature in 5 years. The bonds have a face value of $1,000 and an 9% coupon rate, paid semiannually.
whenever the same efforts must be made to uncork also pour both bottles.
The company's IT Governance Board has been tasked with developing a set of policies to address IT security requirements arising from
Anne plans to retire 20 years from now. To provide for that retirement, she initiates a savings program of $8,500 per year in an investment.
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