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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.
Monetary Policy - Discuss Australia's Monetary policy during last 3 to 5 years. What are its affects and its problems on Australian Economy
In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run increase in investment? Check all that apply.
Consider the market for pizza in a small college town with multiple pizzerias. Initially supply and demand are given by S1 and D, such that equilibrium is at E1. A number of pizzerias close, reducing supply. use the quadrilateral drawing tool to shad..
Your company has two investment opportunities under consideration with the cash flows shown below. The company’s before-tax MARR is 12%. Assuming that the capital is available for either investment and they are mutually exclusive, determine which one..
Present a one-factor Ricardian model of two countries, A and B, trading two goods, X and Y, and discuss the gains of trade generated in this model.
The standard theory of monopolistically competitive firms maintains that, in the long run, such firms will operate at less than full capacity. Does this result depend on whether firms produce identical or differentiated products? Explain. What will h..
At an interest rate of 15%, what is the equivalent annual worth of the savings?
Two firms are planning their marketing strategies. Firm K can earn $25 million in profits from strategy S if firm L responds with strategy P, and $7.5 million in profit from S if L responds with strategy Q. Firm K can follow strategy T, which returns..
Elucidate proponets of free market systems argue that free enterprise leads to more efficient production and better responses to changing consumers preferences.
Create a table that lists at least four sources of growth in the economy along with two examples of each source. A brief caption should accompany your table, explaining what it contains and why these sources are important. Use the Insert Table functi..
Assume that the following conditions exist: Now the Fed engages in contractionary monetary policy. It sells $1 billion worth of bonds, which reduces the money supply, which in turn raises the market rate of interest by 1 percentage point. Calculate t..
Each year, public schools are rewarded with bigger budgets for achieving a rating of "excellent” or "recommended” and are punished for rating "needs improvement.” These ratings are based on meeting thresholds on a broad set of measures such as attend..
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