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Write down the consumer’s maximization problem, and derive the relationship between the marginal rate of substitution of current consumption for future consumption and the interest rate.
Microeconomics, Economics
Question: 1. Mainstream American culture is largely based on the traditions of another culture. Which culture? Why? What are some elements of our culture that provide evidence of this influence? 2. Describe the role of e ...
Discuss various means by which Island Governments in the South Pacific can institute reforms with respect to Government Trading Enterprises for maximum gains to both productive and allocative efficiency.
Question: An economy is characterized by the production functionY = A (K^a ) (L^(1-a) ). The capital share of output is 50%, the depreciation rate is 10%, the investment rate is 10%, the technology constant is 6 and the ...
Question: Emily likes pretzels and pepsi. She bought 10 bottles of Pepsi for $2 each. Her marginal utility for the tenth bottle was 12 utils. She also bought 7 bags of pretzels for $4 per bag. Her marginal utility for th ...
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Question: What are the six most important provisions of GATT? What are relative merits of those provisions? What the extension of GATT to World Trade Organization WTO involves? How do you relate WTO to Globalization? The ...
Question: A French monopoly sells its good in France where the elasticity of demand is -2.5 , and in Germany where the elasticity of demand is -1.5. Its marginal cost is $ 30 . At what price does the monopoly sell its go ...
Question: One constraint in our economy is time. As a society, we make choices about allocation of time between work and other pursuits. In the US, most workers are eligible for overtime pay if they work more than 40 hou ...
Question: Select a developed country that has implemented a tariff and a developing country that manufactures products that are affected by that same tariff. Investigate the impact of the trade barrier on the developing ...
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