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Following the tremendous success of the 'Matthew Hayden Cookbook', we are once more welcomed into the home-and, more importantly, the kitchen!- of Australia's gourmet cricketer for a feast of entertaining stories and mouth-watering recipes. ... As Matt says, 'If a cricketer can cook, surely you can have a crack at it!'
a. Does Australian test cricketer Hayden have an absolute advantage in cricket and food writing? Is this the reason for his success in both activities?
b. Does Hayden have a comparative advantage in cricket or food writing, or both of them, and is this the reason for his success in both activities?
c. Sketch a PPF between playing cricket and producing other goods and services for Hayden and for yourself.
d. How do you (and people like you) and Hayden (and people like him) gain from specialisation and trade?
Shor tage A condition under that the quantity demanded for a good or service exceeds the available supply for that good or service. Shortages usually cause a rise in price
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Assume that in the market there exist two types of workers where the principle cannot distinguish types. The two types only differ with respect to the disutility of effort. The dis
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In year one, suppose the federal government has no national debt and spends $100 billion, while raising only $50 billion in taxes. The U.S. Treasury will issue $ billion of governm
RATIONAL EXPECTATIONS AND ECONOMIC THEORY : We assumed above that the role of economic theory is not to provide quantitative predictions about the future. Suppose we assume ins
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discuss the revealed preference theory of consumer behaviour
Question 1: i) Derive and explain Harberger's (1954) welfare loss estimates of monopolizing a perfectly competitive firm. ii) What are the roles of advertising? Can it lead
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