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28 views

If petrol/gas prices were locked down, how would normal consumers and the producers be affected?

Hey economics stack exchange! Congrats on getting to beta! I wanted to ask a question that was running through my head on a road trip earlier today. Let's say a magic fairy grants a person his wish, ...
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1answer
187 views

Statistics about music tourism

I'm a college student; for my thesis I need some statistics about international classical music tourism. I need some data about how big international classical music tourism is in terms of spending ...
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1answer
1k views

How to interpret Marginal Cost values? [closed]

The Marginal Cost (MC) of an additional unit of output is the cost of the additional inputs needed to produce that output. Here is one of the formulas for calculating marginal cost: $\ MC=\Delta CF\...
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1answer
43 views

Does Bangladesh and India's economy face similar economic obstacles? [closed]

I had a question : Does Bangladesh and India's economy face similar economic obstacles (Poverty, education, unemployment etc) or are they different in their own terms ? I'd be extremely grateful if ...
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1answer
61 views

Present Value at time 0 [closed]

Land is an indestructible capital asset that offers a perpetual revenue flow. You own a piece of land that returns $20,000 per year forever. The relevant real interest rate to consider is 4%. What is ...
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1answer
495 views

Unemployment and its relationship with Inflation

Can anybody please explain me "Inflation-Unemployment Trade-off under Adaptive Expectation and under Rational Expectation"?
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2answers
924 views

Zero Economic Profit and opportunity cost?

In microeconomics textbook, there is always this notion of zero economic profit in perfect competition. We know that when people gets negative economic profit, they often leave the market. What I ...
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1answer
165 views

ln(log) of energy consumption in a econometric analysis

i'm applying a panel data analysis. I have four variables; real GDP, trade openness, energy price and energy consumption. I took ln (log)of trade openness,real GDP and energy price. but i cannot ...
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2answers
245 views

Gold Prices and Terrorism

With the Federal Reserve set to review interest rates next month, the price of gold may very well drop if they increase it. But with the current prevalence of terrorism and insecurity, is the price of ...
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1answer
93 views

Principal Agent Question Private Benefit

If an agent can take action which impacts social welfare in a noisy way, the private net benefit of the action is $P(x,t)=x-s(\frac{x^2}{2} + t)$, $s$ is $(0,1)$ How can I determine the privately ...
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2answers
137 views

Does the Samuelson condition assume all the prices for the private goods are the same?

Suppose I have two agents with utility functions $U_i$ and $U_j$ and budgets $p_x x + p_g g = m_i$ and $p_y y + p_g g = m_j$. If I solve a social planner UMP, I will get for my g FOC (after plugging ...
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1answer
752 views

Is America getting to a point where there are many more people than jobs or money to go around? Are times better or worse than 50 years ago? [closed]

Is America headed to a point of too many people, not enough work? Is life for an average American better than 50 years ago? I have asked about automation in my first question. Then I've asked a ...
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1answer
46 views

GDP to employed people ration - solow swan model

Two countries A and B have identical production function $Y=AK^{1/3}N^{2/3}$, they are identical when it comes to all other factors with the exception that savings rate is $s_A>s_B$. a) What is the ...
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1answer
66 views

Co-integration and Error correction [closed]

This is a homework question: $y_t = \alpha y_{t-1} + \beta_0 x_t + \beta_1 x_{t-1} + \epsilon_t , 0<\alpha<1, (t=1,...,T)$ where $x_t$ is an I(1) process independent from $\epsilon_t$ for all $...
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1answer
341 views

Macroeconomics Homework Question [closed]

I am curious how I solve this question, I will include an image below. I am not looking to be spoon-fed just informed. If you could answer and provide an expiation for the answer that would be awesome!...
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1answer
156 views

Question about misperception in IS-MP model

Why is these steps happens one after another in IS-MP Model if MP curve is a horizontal line? Also, is this preventable? a) Policymakers believe the slow-down in growth is caused by a negative ...
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1answer
258 views

If Eurodollar never leaves U.S., then what do we mean by bring eurodollar on shore

We already know that Eurodollar never leaves U.S. But then what do the media mean when they say bringing U.S. dollar offshore (eurodollar) onshore? Isn't it always onshore? (Let us omit the real ...
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2answers
173 views

Can value be defined as any increase in consumer or producer surplus?

I know that the term Economic Value Added is an internal measure that executives use to measure the financial performance of a company, say, executing a project. However, I'm doing some research in ...
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1answer
2k views

Cost function and short run supply

Suppose there is a number of identical firms producing diamonds. Let the total cost function for each firm be given by $C(q, w)$, where q is the firm’s output level and w is the wage rate of diamond ...
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1answer
117 views

Unemployment and Labor Force MacroEconomics

Suppose that the total population on the 1st of January 2001 was 40 million people, of which 30 million were above age 16. Suppose that among the latter, 12 million people were not working or actively ...
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1answer
76 views
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3answers
789 views

Why are interest rates so high in Russia?

In Russia we currently have 11% of Central Bank's interest rate and you can get credit in commercial bank for about 25% in year. Why are interest rates so high?
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1answer
2k views

What happens to a production possibilities curve whenever there is too much labor? [closed]

If too much labor is added to a country's production, what happens to the production possibilities curve?
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2answers
56 views

Foreign Currencies Exchange Data [closed]

I need data for forex rates because I'm working on a project to predict the rise and fall of the rates. Where can I find such data?
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1answer
133 views

Difference between automated and living labor pertaining to surplus value

In the Marxist concept, animals, machines and slaves are incapable of producing surplus value. They only produce as much as they have to in order to function, and no more. Doesn't this also describe ...
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1answer
769 views

Real world example of using difference quotient vs. derivative

When would you use the difference quotient in an economic model rather than the derivative to assess the change in some endogenous variable? Real world examples seem to be lacking in textbooks on ...
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1answer
432 views

GHH Preferences: FOC

Wikipedia states GHH preferences to have the general form $$V(c, l) = U(c - G(l))$$ with $U$ increasing concave, and $G$ increasing convex. In interior solution w.r.t. $l$ requires $$ U'(c - G(l))...
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1answer
93 views

Can the benefits provided by the Ex-Im Bank of the US be considered a Public Good?

With the debate surrounding the upcoming re-authorization of the Ex-Im Bank of the US, I wanted to hear from someone who might know. What is the best case to be made for its continued operation? I ...
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1answer
178 views

Marginal rate of technical substitution for multi-dimension inputs? [closed]

Suppose I have a vector x = ($x_1,x_2,x_3,x_4,x_5$) of inputs. How it is the MRTS($x_1,x_2,x_3,x_4,x_5$) ? And which is the relation with the marginal products of inputs 1-5 ?
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2answers
131 views

What do banks do with “Repaid Principal”?

When a bank receives payments towards repayment of the principal of a loan, it is called "Repaid Principal". What does a bank do with this amount? Does "Repaid Principal" add up to their pool of ...
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1answer
1k views

What is the correct way to calculate a selling price from margin and a cost?

There seems to be two formula to calculate a selling price. The first formula that I came upon would be ...
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1answer
80 views

Is $y$ always output per person in DSGE/RBC models?

As title says, is $y$ output per person in DSGE/RBC model? If so, why did macroeconomics decide not using Solow/Cobb-Douglas style of using full labor to characterize economy? Model reference: http://...
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1answer
117 views

Why do all apartment complexes in Albuquerque have pools?

Apartment builders have a constrained optimization problem whereby they balance building different amenities to attract tenants with varying preferences. Recently when searching for apartments I ...
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1answer
115 views

Minimization of costs combination of factors of production

Given the production function $D(x,y,z)=\min\{2x, \left( 2y+4z\right)\}$, and knowing that P-price $P_x=30,P_y=20,P_z=5$ and volume of production $D=200$. How much of x,y and z is needed to minimize ...
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1answer
61 views

How does excessive consumption in an area decrease tax revenue?

Source: p 156, Urban Geography (2009; 3rd ed) by Michael Pacione The main ideological battle is between pro-growth and anti-growth factions. The pro-growth ideology proclaims that more ...
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1answer
3k views

Why is the social value curve NOT the supply curve shifted downwards?

Abbreviate 'Social Value' as SV. In some other resources such as this, the SV curve is known as the Social Marginal Benefit curve. The following quotes explain [1.] why the SV curve is the demand ...
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1answer
7k views

What is “Stated-capital”?

What is Stated Capital? I have found some definitions on the Google, but I have not been able to comprehend it from this definitions. Could somebody explain it to me?
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1answer
84 views

Perfect competition profits question

Market is supplied by: 50 competitive companies all of them have relatively low costs given by an equation $C_l(q)=350+2q+q^2$ and by n companies of higher costs given by an equation $C_h(q)=400+2q+q^...
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1answer
853 views

Perfect competition questions

I have problems with deciding whether those statements are true or false. In a short/long run price of equilibrium on a perfectly compettive market might be either lower or higher then average total ...
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1answer
404 views

mean variance utility function for risk loving person

Let $X$ denote wealth. The mean variance utility for a risk-averse person is given by $E(X)-\frac{r}{2}Var(X)$ where $r$ is degree of risk-version. $r=0$ implies that person is risk-neutral. How does ...
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1answer
132 views

Help interpreting a Taylor rule [closed]

I need a bit of help interpreting this version of the Taylor rule I stumbled across recently: $$\ln\frac{1+i_t}{1+i} = X_i \ln\frac{1+i_{t-1}}{1+i}+X_{\pi}\ln\frac{\pi_t}{\pi}+X_y \ln\frac{Y_t}{Y}+...
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1answer
294 views

Question about constant relative risk aversion

The question: Consider a person with constant relative risk aversion $p$. (a) Suppose the person has wealth of $100,000$ and faces a gamble in which he wins or loses $x$ with equal probabilities. ...
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1answer
307 views

What is the impact on the money supply of a reduction in the required reserve ratio? [closed]

In April 2011, the money supply was estimated to be 52 million hurls. At the same time, bank reserves were 6.24 million hurls and the reserve requirement was 12 percent. The banking industry, being “...
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0answers
8 views

How does the stock market correlate with the economy?

What's the Correlation Coefficient between the Canadian and US stock and economy? Don't hesitate to discuss other stock exchanges. On Apr 30 2020, Paul Krugman wrote Opinion | Crashing Economy, ...
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0answers
9 views

In the presence of non-zero inflation rate, which of the following affects the money Demand?

In the presence of non-zero inflation rate, which of the following affects the money Demand? A. Only output. B. Output and nominal interest rate. C. Output and real interest rate. D. Only real ...
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1answer
30 views

Tadelis ‘trading places’ Bayesian game

My question concerns the following problem: two players, 1 and 2, each own a house. Each player i values his own house at $v_{i}$. The value of player i's house to the other play, i.e., to player j$\...
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0answers
37 views

Sraffa's Model of Price Determination in a Subsistence, Circulating Capital Economy

This question is prompted by reflection on the opening of Sraffa (1960), pp 3-4 in the Indian edition linked here. Sraffa presents a simple model of a subsistence, circulating capital economy (an ...
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0answers
12 views

How can increasing debt boost potential returns?

May 26 2020. Why Even Carl Icahn Couldn't Save Hertz From Chapter 11 - Bloomberg Hertz’s debt binge began when it was acquired by private equity firms from Ford Motor Co. in 2005; the new owners ...
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0answers
5 views

How collateral easing measures complement PELTROs or TLTROs?

ECB introduced Collateral easing measures on 8th April to complement its already existing refinancing operations. Do banks have to keep some collateral with ECB while borrowing? This is when they are ...
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0answers
5 views

House allocation: Data notation correction with Top Trading Cycles (TTC) example

I am trying to understand TTC algorithm for house allocation. I have got a small problem. I am trying to understand the following example: IE=[i1 , i2 , i3 , i4], IN=[i5], Ho=[h1 , h2 , h3 , h4], ...

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