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The Big Mac Index computed by The Economist magazine has consistently found the U.S. dollar to be undervalued against some currencies and overvalued against others. This finding seems to be at odds with the purchasing power parity theory. Explain why this index may not be a fool-proof test of the theory.
Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of dema..
Using the standard Solow growth model (i.e., without technological change as graphed below), draw and describe the effects that war involving high casualties has on capital per worker. Assume this war occurs on foreign soil and thus does not damage t..
Derive the monopoly output for period A, disregarding production in period B. What kind of equilibrium in terms of top dogs, etc. is this?
Consider the following facts. After the age of 25, persons with college degrees earn more than persons with no education beyond their high school degrees, ceteris paribus. Moreover, persons with high school degrees earn the same as persons who have h..
A corporation has ten employees, all of whom want a more pleasant work environment. Accordingly, they are considering removing litter from the grounds of plant.
Suppose Mike and Johnson produce two products- hamburgers and T-shirts. Mike produces 10 hamburgers or 3 T-shirts a day and Johnson produces 7 hamburgers or 4 T-shirts. Assuming they can devote time in making either hamburgers or T-shirts. Draw the p..
Find out the optimal prices, the number of tickets sold in each area and the seller's profit given that the seller wants to serve all consumers.
According to Global Insight, a Massachusetts economics consultancy, what will happen if oil prices remain in the range of $65 to $70 per barrel for a couple of more months?
For this case read the article below concerning connecting the factory floor to the intranet/internet. This seems to be an effective way to manage an organization's inventory.
sir francis galton a cousin of james darwin examined the relationship between the height of children and their parents
What does Tim Harford, author of the undercover economist, think are the major reasons for increasing inequality in English speaking countries?
A small Indiana town has one resident who uses and enjoys the local bowling alley. The marginal benefit of bowling for that resident is given by MB=50-6Q. The manager at the bowling alley has set the price of a game at $20. What is the total benefit ..
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