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50 views

How did Wells Fargo intend to profit by opening up two million fake accounts?

In 2016 Wells Fargo was fined $185 million dollars by the Consumer Financial Protection Bureau for opening up two million fake accounts, that is accounts without their customers permission. Q. How ...
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votes
2answers
139 views

Proof that the budget set is closed [closed]

Mas-Colell, Whinston and Green's Microeconomic Theory affirms the budget set is closed. I would like to know why. The definition of open set in the book is the following:
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votes
1answer
51 views

How does social cost and social benefit work?

I am really lost right now. I have a test tomorrow and I am stressing out. Whatever I look at for externalities, which could be my textbook, a website, notes from class, they all contradict each other....
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votes
1answer
25 views

Am i correct here? #greenTaxes #priceMechanism #inefficientTax #DeadweightLoss [closed]

Now accoring to this article: https://www.telegraph.co.uk/news/2016/07/30/britain-banishes-plastic-bags-as-5p-tax-sees-usage-plummet-by-6/?fbclid=...
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votes
1answer
23 views

Did the word “than” mean something different in The Wealth of Nations? [closed]

What does the last phrase after the last comma in this sentence mean? And, in the end, the civil magistrate will find that he has dearly paid for his intended frugality, in saving a fixed ...
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votes
1answer
126 views

How do I find optimal price or maximise profit in a monopolistic market?

How do I find the optimal price for a monopolist given the monopolist's cost function and market demand? I have $Profit(y) = p*y + C(y)$ where $p$ is price, $y$ is output, and $C(y)$ is total cost. ...
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votes
2answers
109 views

Why doesn't the central bank extend loans directly?

I've been thinking about the credit theory of money lately and how it creates money. Since Banks look for sufficient reserves after extending a loan, and since the central bank always loans out money ...
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votes
1answer
584 views

Calculating income and substitution effects

Consider a simple quasi-linear utility function of the form $U(x,y)=x +ln(y)$. For this problem, assume that you have “enough” income, so that the optimal consumption bundle is where: $x,y >> 0$....
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votes
1answer
1k views

Find optimal price from demand function?

I've been struggling with this for hours, trying to figure out how to solve this. "A perfectly competitive market has the marginal cost function, c (cost is C(y)=cy) and is facing the demand function:...
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votes
1answer
352 views

Expenditure minimization with Leontief utility

I need to solve the expenditure minimization in a context where $u(x,y) = min\{x,y\}$, i.e. where utility is Leontief. The minimization problem is $$\text{min}_{x,y}\,\,p_xx+p_yy \\ \text{subject}\,...
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votes
3answers
60 views

What's a product that historically has always had the same value, and probably will in the future?

Money usually has inflation tied to it, but is there a product that has stayed around the same value world wide for a very long time, and probably will for a very long time as well (something like 100 ...
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votes
1answer
42 views

Is health care equal in the emergancy room? [closed]

How does financial status dictate the level of care differ? Where can you find the best healthcare income to medical service rendered? I understand that health care differs depending on a ...
-1
votes
1answer
326 views

Profit maximization and allocative efficiency result

I completely stuck to the last part of this exercise. I cannot understand how can I determine an allocative efficiency result. Any help will be appreciated. Thank you.
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votes
1answer
126 views

Sustainable growth in the long run [closed]

Suppose that, in addition to physical capital and labour, an economy requires a fixed factor and a non-renewable resource to produce the final good. Prove that an economy with these input requirements ...
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votes
1answer
38 views

Cross elasticity of demand [closed]

If Q1=(P2)⅔ 1. Determine the demand for good 1, when the price of good 2 is 8 2. Find the cross elasticity of demand for good 1, with respect to P2, when P2=2
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votes
2answers
51 views

A unique global currency and a balanced macroeconomic system

During my last trip, I traveled in Bolivia for two months, and I was struck seeing how life was cheap there, from a European point of view. I believe that is the same in the great majority of the "...
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votes
1answer
99 views

Auction question

I’m studying on auction. But I couldn’t understand some questions about this topic. And I cannot solve such type questions. For example, I know that a set of symmetric and risk neutral bidders ...
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votes
1answer
316 views

How does a decrease in money supply affect price levels and Real GDP in the short run?

Specifically, when a short run AS curve is positive, how does a decrease in money supply affect price levels and Real GDP in the short run? Thank you!
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votes
1answer
33 views

how do you calculate unemployment rate from wage rate? [closed]

how do you calculate unemployment rate from wage rate?
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votes
1answer
25 views

I want formula for compund interest with regular and fixed replenishments

For example: Let's suppose that at the end of the first year I got \$8 000 of revenue (like I have a business or something). I put the money in a bank at the beginning of the second year, annual ...
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votes
1answer
360 views

Methods of reducing the natural rate of unemployment?

How might a government or business attempt to reduce the natural rate of unemployment? Is it just supply side policies or does anyone have anything more sophisticated?
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votes
1answer
55 views

asset-pricing problem

Consider the utility function $ν(c_1, c_2) = u(c_1) + \beta u(c_2)$, $0 < \beta < 1$, defined for $c_1 ≥0$ and $c2 ≥0$. Assume $ν′(c)>0$ and $ν′′(c)<0$ for all $c>0$ ; if you like, you ...
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votes
2answers
640 views

Is the law of demand violated in the case of perfectly elastic demand?

In the case of a perfectly elastic demand curve, when price rises the consumer is said to demand 0 units of the said commodity. However, graphically, even when price falls demand falls to 0. This ...
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votes
1answer
48 views

Random Draft Allocation: Nash Equilibrium? [closed]

I would like to find the Nash equilibrium of the following allocation problem. There are 3 courses and 3 students. Each student has to take 2 courses, and each course has a capacity of 2 seats. ...
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votes
1answer
25 views

Is it possbile central banks are outside of books getting money from deflation? [duplicate]

Is it possile that central banks are secretly stealing from the economy by printing money when the the dollar deflates, so the dollar stay the same value and nobody notice it? What if the dollar ...
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votes
1answer
30 views

Where did Hayek say knowledge is the ability to learn?

If I'm not mistaken, in some work Hayek mentions that knowledge as he means it consists not so much in the awareness of facts as in the ability to learn. It may have been in a passage concerning ...
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votes
1answer
65 views

How can I achieve better standard error values in Stata?

I am struggeling to find the specific commands to achieve lower standard errors within simple regressions. I would be thankful for your help.
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votes
1answer
552 views

Monopoly and competitive output levels

Why do markets that are dominated by a single seller have a tendency to maximize profits at lower levels of output than their competitive counterpart? Why is the competitive market equilibrium price ...
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votes
1answer
88 views

What should the Euro regulators look for and monitor to prevent a Euro crisis? [closed]

What should the Euro regulators look for and monitor to prevent a Euro crisis?
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votes
1answer
103 views

Strong Austrian arguments against copyright

For many years, I held a strong position against the copyright based on the effects of enforcing copyright on freedom of speach in the internet. However, recently I read Rothbard's Man, Economy, ...
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votes
1answer
105 views

What are the differences on the impact of a universal basic income from a liberal and a keynesian point of view?

A classmate asked me this and I have no idea how to approach the question. How would I even describe the effects of the universal basic income on the labour market from a Keynesian point of view?
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votes
1answer
46 views

Is there anything wrong with the idea that resource depletion causes recessions? [closed]

Just wondered if anyone has considered this. And any problems with the idea. Such as another theory.
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1answer
128 views

Can Ramanujan Sum : 1+2+3+4+5+… = -1/12 be used to explain some results in macro-economics? [closed]

In this youtube video the speakers present a line of reasoning as to why $$ \sum_{n=1}^\infty n = -\frac{1}{12} $$ in other words $$1+2+3+\cdots=-\frac{1}{12}$$ and my brain still hurts. It ...
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votes
1answer
468 views

The perception of the effects of government spending within the political world

Econ 101 teaches that government spending comes with a multiplier effect, yet whenever anyone in an election wishes to raise the size of government by even 0.5%, the right starts screaming the world ...
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votes
1answer
72 views

Microeconomic Q on Total Revenue for Producer after Excise Tax [closed]

I had a question on how an excise tax per unit of good produced for a producer would affect total revenue for a producer of that good. The graph is that supply is perfectly elastic (horizontal) and ...
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votes
2answers
459 views

Log relative price index - calculation question

I have US CPI prices & Canada CPI prices (where US is my base). I am trying to calculate the 'log relative price index'. Do I log the individual CPI prices first then calculate log Canada CPI/log ...
-1
votes
1answer
34 views

Multinomial logit with an rct [closed]

If I'm running a randomized control trial, and the regression model I'm looking at is a multinomial logit, what would my specification be? I.e. what would the equation look like? Some dumbed-down ...
-1
votes
1answer
102 views

Budget constraint when one of the goods can be sold

I'm studying for a microeconomics midterm and ran across the following question: A person consumes two goods, X and Y. The consumer's only source of income is given by the quantity of Y equal to ten,...
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votes
1answer
45 views

Integer values in difference equations

In difference equations, the time variable $t$ can only take integer values. Does this imply that the variable $y_t$ must be considered a discrete variable?
-1
votes
1answer
930 views

Profit maximisation and cost minimization [closed]

Does profit maximisation always imply cost minimisation ? And Does cost minimization always imply profit maximisation ? Can we prove both the results ??
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votes
2answers
52 views

what mathematical function we can use to show house price changes in time? [closed]

I want to know if I have data of house prices of an area in time, what mathematical function will best fit it's graph? Or in other word, what function I could use that in time $t$, $f(t)$ will be a ...
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votes
1answer
160 views

If the price of a good rises, will the demand always fall?

If the price of a good or service rises, the demand for that product will always fall? Apart from Giffen goods and luxury are there any other cases and what economic analysis supports or argues with ...
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votes
1answer
140 views

Utility Maximization [closed]

Assume the utility function is $u(x,y,z)=y*min[x,z]$. The prices of all three goods are equal. The agent has an amount $M$ to spend on the goods. He has to choose one of the following schemes: A) Get ...
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votes
1answer
46 views

Statistics: Understanding confidence interval [closed]

In R I have used lm()to fit a model. Then I use the confint() function to learn more about the slope. How to I understand the ...
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votes
1answer
864 views

the difference between cobb-Douglass and leontief production technology [closed]

whatis the differences between cobb-Douglass and leontief production technology
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votes
1answer
360 views

What consumer preferences exhaust the budget?

Suppose that a consumer has a complete and transitive preference relation over R+. Further suppose that the consumer faces prices p = (p1,p2,...,p) 0 and has ...
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votes
1answer
32 views

Put option valuation [closed]

Does a European put have different fair values at time 0 in long and short position? If so, could you explain to my why? Instinctively, I think the answer is that there is no difference, since ...
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votes
1answer
39 views

How is short-term borrowing by banks in the US performed?

I read a statement that one reason for persistent demand for US Treasuries is that US banks buy them because they can be used as collateral for acquiring short-term debt. I don't understand this. If ...
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votes
1answer
999 views

Slutsky and Hicks approach in calculating SE, IE. Differences and interpretation [closed]

Level: Ungrad, Micro I have a task, http://imgur.com/a/JT4zB I have done some questions. While I can't understand the differences between Slutsky and Hicks approach. I get it theoreticaly, but I don'...
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votes
1answer
51 views

As elasticity moves from negative to less negative, this causes prices to increase and profits to increase

Is there an intuitive way to understand why this is so. I want this explained in a layman's terms. I know negative means they are inversely related, which is what you would expect most items to follow....

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