Question: Assume real GDP is $9,000 billion, and disposable income is $6,000 billion. The government cuts personal income taxes by 1% of DI (i.e., $60 billion). As a result, interest rates rise by 2/3%. Assume transfer p ...
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Question: Anderson Plastics has major fabrication plants in Texas and New York The president, Bob Anderson wants to know the equivalent future worth of a $100,000 capital investment each year for 8 years. Anderson Plasti ...
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Question: In another economy consumer 1 has no x and 8 units of y and the utility fucntion U(x,y) = x - (1/4)y 2 . Consumer 2 has 16 units of x and 8 units of y and the utility function U(x,y) = x +2y (1/2) . Describe th ...
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Question: Choose and focus on one negative consequence of globalization. Explain what the issue is, and why it is problematic for the world. Describe what you think should be done to improve this situation. If you think ...
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Question: Practice critical thinking Define in three to four sentences, in your own words, the difference between inductive and deductive arguments. Explain in three to four sentences what the difference is between valid ...
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Question: Do two variations on the tycoon problem with 100 firms. In the first, all numbers are the same as in the text, except the probability that a company is good is now .4 instead of .6. How many winner firms will b ...
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Questions - How does the FDA face the problem of scarcity? Do you think that the FDA is making good choices in the face of scarcity? Explain the trade-off that the FDA faces.
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Question: 1. Suppose that the utility possibility frontier for two individuals is given by U A + 2U B = 200. a- Draw the utility frontier b- If the social welfare function is of the Nietzschean type, W =max{U A , U B } ...
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Question: Topic: Marijuana There is much discussion in the press about several states moving to legalizing marijuana, either for only medical purposes, or more extremely, for recreational purposes. Looking only at the ec ...
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Question: There are two firms with the following marginal abatement curves: MAC 1 (E 1 )=50-E 1 /4; MAC 2 (E 2 )=75-E 2 /2. Marginal damages as a function of total emissions is MD(E T )=E T /3. (a) Derive the aggregate M ...
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