Homework 3 Due 2/24/14 1) Using a diagram‚ show that‚ if a consumer prefers more to less then his indifference curves cannot cross. 2) Suppose that current and future consumption are perfect substitutes. The indifference curves will consist of parallel lines with the negative slope m‚ where m > 0. a) How does the marginal rate of substitution between current and future consumption relate to the geometry (i.e. the slope and the intercept) of the consumer’s indifference curves? b) Given
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A world bank report in 2007 commented on the continuing need for major spending worldwide on infrastructure in everything from roads and railways to water and electricity generation. A) Explain the effect of national income when there is an increase in spending on infrastructure. B) Discuss whether an efficient allocation of resources can be obtained only if large scale investment is undertaken by the public sector rather than the private sector. A) The national income of a country
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A. Discuss elasticity of demand as it pertains to elastic‚ unit‚ and inelastic demand. Elasticity of demand is gauged by the percentage of change in demand when the price of an item varies. If the change in the quantity demanded is greater than 1 the demand is elastic. Elasticity of demand is calculated by ED=quantity demanded/decrease in price. If you reduce the price of milk by 6%‚ and that causes an increase of quantity demanded by 9% the demand for milk is elastic (ED= .09/.06 = 1.5).
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out of 1 points According to the graph below‚ if a country is currently producing at point X‚ the opportunity cost of producing another consumer good is Selected Answer: 20 capital goods Answers: 20 capital goods More than 20 capital goods Fewer than 20 capital goods 20 consumer goods Fewer than 20 consumer goods Question 2 1 out of 1 points The basic economic problem of all countries is the existence of Selected Answer:
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Because trade and consumer products are] readily available throughout the world‚ globalization impacts the purchase of items. Items such as Hello-Kitty‚ Coma-con and anima are both popular cultures that have made their way to the United States. Fast food franchise‚ especially McDonald’s‚ is a pop culture found throughout the world from the Virgin Island to France. Globalization will continue to impact popular culture in all aspect of all countries‚ as long as the consumer has choices.
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questions 6 6 36 60 minutes Short answer questions I 6 4 24 36 minutes Short answer questions II 10 3 30 50 minutes Very short answer questions 10 1 10 15 minutes 2. Weightage by content Unit No Unit Sub-Units Marks 1 Introduction 4 2 Consumer Equilibrium and Demand 18 3 Producer Behaviour and Supply 18 4 Forms of Market and Price determination 10 6 National income and related aggregates 15 7 Money and Banking 8 8 Determination of Income and employment 12 9 Government Budget
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Name: __________________________ Date: _____________ 1. The law of demand implies that: A) consumers are not responsive to price changes. B) consumers will buy more at lower prices. C) sellers will offer more on the market at higher prices. D) sellers will offer less on the market at lower prices. 2. Which of the following factors would cause a movement along the demand curve for a particular good? A) a change in the prices of related goods B) a change in the price of that good C) a change in the
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high-value food commodities is likely to be affected negatively. Therefore‚ the study has cautioned that if inflation in food prices remains unabated for an extended period‚ there is the possibility of reversal of the trend of diversification and that of consumers returning to cereal-dominated diet‚ thus accentuating under-nourishment. Key words: Food demand‚ Demand elasticity‚ QUAIDS model‚ FCDS model‚ Household food demand JEL Classification: Q11‚ Q18 Introduction One of the conspicuous outcomes of the
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been far stronger than we anticipated‚" said Lee Don-Joo‚ head of sales and marketing at Samsung’s mobile unit.US telecom carriers T-Mobile and Sprint both had to postpone scheduled sales of the S4‚ citing delays in shipments from the South Korean consumer electronics giant. The world’s top handset maker starts selling the much-anticipated device in South Korea on Friday‚ followed by a global roll-out at the weekend. The S4‚ armed with eye motion control technology that will pause a video when the
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Economics 201 notes Chapter 1 : First Principles • Economics is science of decision making • individual choice is the basis of economics • methodology = cost-benefit analysis • If it does not involve choice‚ it isn ’t economics. • Resources (something used to produce something else) include capital like tools and equipment‚ land like natural resources and labor • Resources are scarce • Opportunity cost are all costs that you must give up to get it. • trade-off is the
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