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suppose you have $5.00 if you use the money to pay electricity bill you will gain or benefits monetary terms $8.00 whiles if you use it to board a taxi you will gain $10.00.
what is the opportunity cost for spending the money on transportation
If the total cost is positive at zero level of output, what does it signify?
Y=5-2x and Y= 2+3x in the same graph Identify the equilibrium value for x and y
Consider a country with a flexible exchange rate, and which initially has a current account surplus of zero. Then, suppose there is anticipated increase in future total factor productivity. (a) Determine the equilibrium effects on the domestic economy in the case where there are no capital controls. In particular, show that there will be a current account deficit when firms and consumers anticipate the increase in future total factor productivity. (b) Now, suppose that the government dislikes current account deficits, and that it imposes capital controls in an attempt to reduce the current account deficit. With the anticipated increase in future total factor productivity, what will be the equilibrium effects on the economy? Do the capital controls have the desired effect on the current account deficit? Do capital controls dampen the effects of the shock to the economy on output and the exchange rate? Are capital controls sound macroeconomic policy in this context? Why or why not
Evaluate the importance of studying Economics
Clothing stores frequently run "sales" where they discount clothing prices by as much as 25 percent. What impact, if any, would you expect this sales to have an store that specializes in selling shoes produced by rockport?
Assuming there are two goods X and Y and two persons, analyze the exchange of goods between the two using the Edge worth Box framework indicating the Pareto efficient allocation
Define an indifference curve. Explain how a consumer attains equilibrium under the indifference curve approach. Also decompose the price effect into income effects and substitution effect when price of commodity measured along X-axis decreases.
Is it possible to consume so much of the same good that it turns into a bad? If so, give an example
1. On January 3, 2003, Ale Hab, an ex-manager of the CBE Bole Branch, established his own consultancy business. He named his business "AH Consultancy Services". The objective of the business is to render financial consultancy services to clients on a fee basis. Below are business activities occurred during the first month of operation of the firm (3 to 31 of January, 2003).
a. Alemu deposited $20,000 cash in a bank account in the name of his business - AH Consultancy Services (Deposit slip # 1). He has $250,000 cash in his personal bank account with Dashen Bank and $50,000 cash in a safe deposit box at home.
