# All Questions

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376 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?
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 ...
660 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 ...
50 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. ...
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 ...
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 ...
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.
563 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 ...
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?
105 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, ...
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?
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.
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 ...
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 ...
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 ...
489 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 ...
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 ...
103 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,...
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?
952 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 ??
54 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 ...
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 ...
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 ...
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 ...
883 views

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

whatis the differences between cobb-Douglass and leontief production technology
367 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 ...
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 ...
40 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 ...
1k 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'...
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....
234 views

### Consumer Theory (Finding demand function) [closed]

Here's the question that I really need help with: $$U(x,y)=(x^{0.5})+y$$ $MUx=\frac{1}{2x^{0.5}}$ and $MUy=1$, where $x$ is food, $y$ is clothing $Px$ is the price of food, $Py$ is the price of ...
15k views

### How do you know if a good is a complement or a substitute from given demand and supply functions? [closed]

QD1 = 190 - 2P1 - 2P2 QS1 = - 10 + 2P1 QD2 = 240 - 2P1 - 4P2 QS2 = - 40 + P2 Are these goods substitutes or complements?
6k views

### Calculate deadweight loss from cost and inverse demand function in monopoly [closed]

Consider a monopolist with inverse demand p = 200 - 2*q. The firm's total cost function is C(q) = 100 + 20*q. What is the deadweight loss of monopoly? To my understading, since we don't have any ...
95 views

### Housing bubble and financial crisis [closed]

Can anybody explain me easily what is housing bubble and how it cause financial crisis?
2k views

### We know that an equal and simultaneous increase in G and T will cause…?

My textbook says GDP will increase because all of the tax money will go into G, whereas only part of income goes into C. However, since savings = investment, wouldn't an increase in taxes (and ...
815 views

### Series 2013 US dollar bills [closed]

it's 2015 now but still, I can't find any USD bills of 2013 series. All my bills are 2009 series (not even 2009A series). I'm looking for 100 dollar denomination. what's the latest series for USD ...
1k views

17 views

### How to maximize total revenue on constant elasticy curve

So to maximize total revenue, we sell at the price on the demand elasticity curve where elasticity=1 right? Lets say on one curve, the elasticity throughout the curve is equal to 1.5? How much should ...
### How to draw the graph of $u(x) =min\{x_{1}, x_{2}\}$ and $u(x) =max\{x_{1}, x_{2}\}$?
Given the utility function $u(x) =min\{x_{1}, x_{2}\}$, and $u(x) =max\{x_{1}, x_{2}\}$, I know that the indifference curves look like an L shape and inverted L-shaped, respectively. However, I don'...