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1answer
67 views

Cons of printing more money but not injecting in the system directly

So I don't know if this might be the right place, if it isn't I'd appreciate if anyone can link me to the right place. Anyways here is the question. I've read up on what are the cons of printing more ...
-1
votes
1answer
188 views

Pareto-optimal allocations in the Edgeworth box

If agent A has utility function $u(x_1, x_2)$ and agent B has utility function $v(x_1, x_2)$, what are the equation(s) that characterize the Pareto-efficient allocation of goods in the Edgeworth box? ...
-1
votes
1answer
64 views

Would a very cheap renewable energy source be harmful economically?

This question is not on whether these devices work or not but so much as if they did work. What if electricity can be made so cheap that everyone could afford it ti the point there was no demand for ...
-1
votes
1answer
127 views

Equilibrium income in Simple Keynesian Model

I could not understand how to analyse the effect of the given situation in this question on government's expenditure and income. If the budget is balanced, the use of calculus technique also didn't ...
-1
votes
1answer
140 views

Conducting an experiment to calculate empirical elasticity with very small price changes

Let's say I want to conduct an experiment where I randomly vary the price of a product up or down by a small amount. Let's say I want to understand the price elasticity of demand for online shoppers ...
-1
votes
1answer
2k views

Inferior and normal good and the change in price of those goods

In general, We know that if a good is normal, then as your income increases, then demand of that good increases as well as price is fixed. Similarly, if a good is inferior, then as your income ...
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votes
1answer
55 views

Indiference between two lotteries

Suppose that a binary relation satisfies only: Independence axiom: $L≿L′⟺α\circ L+(1−α)\circ L′′≿α\circ L′+(1−α) \circ L′′$ Reduction to simple lotteries: For all $g$, $g~g'$, $g'$ is the simple ...
-1
votes
1answer
42 views

Economic impacts of Migration on the Labour Market

Many natives don't prefer foreigners taking their jobs, is it actually a bad thing for the countries economy?
-1
votes
1answer
27 views

Productivity issue

Could someone help with the following? Company produces products of daily demand. It employs workers In number of 12 people (HER) Wages of workers. The costs of hiring and firing are 25 per employee, ...
-1
votes
1answer
37 views

Will a consumer be more, or less willing to give up a commodity (for the other) for which they have been substituting another? [closed]

Statement: "Indifference curve analysis is based on the assumption of diminishing marginal rate of substitutiins. This means that as the consumer substitutes more and more of one commodity (say X) for ...
-1
votes
2answers
63 views

Calculate real GDP

Assume that the annual growth GDP per capita is 2%, how much will the real GDP per capita increase in 10 years. I know the manual way is to take 2 percent every years. For example after 1 year would ...
-1
votes
1answer
99 views

Stochastic process difference equation: stationary distribution

How can I find the stationary distribution (as t goes to infinity) of stochastic difference equations in the form: $x_{t+1} = a*x_t + b*N(0,1)$ where N(0,1) is a standard normal pdf I have ...
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votes
2answers
60 views

How much of an assets price change is due to speculators and functional buys/sellers

If (for example) a heavily traded asset like crude oil has a price move of x, how much of that is influenced by functional buyers/sellers and how much by speculators? Let's say x is +100, there are 8 ...
-1
votes
1answer
112 views

Effects of long run stability in U.S price level comparing to other countries on net export

Suppose the United States experiences a long period of relatively stable prices while other countries experience long periods of inflation. How will this affect U.S. net exports? I think that if U.S ...
-1
votes
1answer
42 views

How Mark Zuckerburg (or any other company founder) got valued at billions?

I read that Facebook got worth at billions after IPO, but how did this brought money to Mark himself. And did Facebook earned before IPO, or after IPO. I think that after facebook earns from revenue ...
-1
votes
1answer
94 views

Inflation and stock price

I have indicated my understanding and problem on the attached image below. I'm a bit confused on the impact of inflation on stock price. As increase in inflation would cause nominal interest rate to ...
-1
votes
1answer
182 views

How to derive a Nash equilibrium pure strategy in a linear Cournot Model [duplicate]

Suppose there are $N$ firms each with the same positive marginal cost $c$. How would I go about finding a pure strategy Nash Equilibrium for the firms? Suppose the Inverse Demand curve is defined: $p=...
-1
votes
1answer
49 views

Finding out an optional consumption without calculation [closed]

I need help with this task. The utility function is U(a;b)=3a+2b. The prices for the goods a and b are equal. Explain what an optional consumption of the consumer would be without calculating. ...
-1
votes
1answer
39 views

Central Banks Currency being used as value keeping hypothesis

I recently came up with the idea that all the worlds currencies with central banks may be being used as a way to steal value from people who give value to them. And no, im not talking about inflation (...
-1
votes
1answer
425 views

What is optimal profit for this company? [closed]

I am really struggling with the following question: Question: A company produces a product that they sell in two different countries. Because of transport costs, customs etc. it is not profitable ...
-1
votes
1answer
38 views

Can someone explain to me why no new bill exist to regulate financial derivatives yet? [closed]

Isn't it bad economically for soft regulation on financial instruments like derivatives.
-1
votes
1answer
1k views

What is the difference between quoted price and theoretical value of a bond?

When we refer to "quoted price" of bond, or "clean price", it is equivalent to refer to his "present value" or "theoretical value", which corresponds to the price that I invest in the bond? For ...
-1
votes
1answer
1k views

Quick Question on Production Possibilities Frontier Curve

Can someone please tell me how or why the curve shifts outward. In the textbook, I was given that: "But if we cut production of mobile phones to 3 million this year, we can produce 2 mobile phone ...
-1
votes
1answer
76 views

New-Keynesian-Economics

interest rate in Talor rule is considered as endogenous or exogenous? Similarly there are some fiscal policy rules in assuming fiscal instrumens like government expenditure and distortionary taxes ...
-1
votes
1answer
58 views

Could 15 dollars per hour minimum wage hurt the economy? [duplicate]

I was arguing with a friend the other day about increasing the minimum wage to \$15 per hour, Looking over this article http://fortune.com/2015/04/13/who-makes-15-per-hour/ Mostly the charts you ...
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votes
3answers
186 views

Explain inflation to an economic novice

I'm trying to get a grasp on how exactly inflation works. What I've read so far seems to be contradictory. In some articles I've read that government spending is always(?) inflationary, and in ...
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votes
1answer
2k views

Advanced Microeconomics: Deriving Slutsky Equation

I am not sure how to derive the demand for consumption of today's bread; the first thing the problem asks for. I think it might be a piecewise function based on the interest rate that gets you from ...
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votes
1answer
3k views

What is the list of countries where the central bank prints money?

Is there a list of the countries where the central bank is creating money, today ? How much ? We know for: EUR: Euro countries (since ECB QEs) (and euro-bound countries as DKK ?) YEN: Japan (BOJ '...
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votes
1answer
329 views

Finding an exchange rate and competitive equilibrium given an initial allocation and utility function [closed]

I am attempting to solve the following question. "Smith and Jones are stranded on a desert island. Each has in his possession some slices of ham (H) and cheese (C). Smith is a choosy eater and will ...
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votes
1answer
49 views

Including variable with causation problem for estimating from LISS

I am using panel data from the LISS to estimate the effect of whether a person practices sport or not on appreciation of leisure time (scale 0-10). My partner insists on using a variable that ...
-1
votes
1answer
226 views

Price Optimization from Data

How can I find the optimal price that maximizes profits, given past sales data? I thought I could do this, but I've been running into problems. Data: ...
-1
votes
1answer
40 views

Where is the split in the wealth gap? [closed]

I've been curious where the split in the wealth gap has been over time, and if it was possible to graph it. Put another way, at what net worth is the number of those worth more shrinking in ...
-1
votes
1answer
36 views

Meaning of Exchange rate

Does exchange rate of local currency relative to US dollar mean LOC/USD or USD/LOC ?
-1
votes
2answers
59 views

Why does a weaker currency make sovereign debt cheaper?

Investopedia tells me that a weaker currency will reduce sovereign debt burdens. It is quoted as saying 'a weaker currency makes [these] payments effectively less expensive over time.' However, I ...
-1
votes
1answer
32 views

Effect of a Deflationary Cryptocurrency

Wikipedia lists Deflation as a bad thing, but I'm assuming that the article makes the assumption that the currency is a fiat currency (as opposed to cryptocurrency). I understand the general principle ...
-1
votes
1answer
29 views

CEO Compensation in Banking Data

My main goal is to compare CEO compensation for banks across different countries. Does anybody know where I can find data on CEO compensation for banks for different countries or a paper which ...
-1
votes
1answer
71 views

Microeconomics for demand [closed]

Oscar’s demand for movies is given by Q = 10−2P. (a) What is the price elasticity of demand at a price of 2? Is Oscar’s demand elastic or inelastic at a price of 2? (b) Assume that the ...
-1
votes
1answer
448 views

Balance of Trade - Currency devaluation in a price taker economy

How will a real exchange rate devaluation affect Balance of Trade, if an economy is a price taker in world markets for both export and import?
-1
votes
2answers
55 views

How does real gdp affect the domestic currency?

When the domestic real gdp per capita increases then it has a negative effect on domestic currency (depreciation)? Why? Source: The real exchange rate of euro and Greek economic growth, Gregory T. ...
-2
votes
3answers
152 views

Does the Fed use misinformation as a tool for good monetary policy?

The Congress established the statutory objectives for monetary policy-- maximum employment, stable prices, and moderate long-term interest rates --in the Federal Reserve Act. http://www....
-2
votes
1answer
61 views

Is game theory supposed to be this easy? [closed]

I have a course in game theory coming up, and I decided to look at the curriculum, which is a book by a guy called Gibbons on game theory. I skimmed it, but it seems that the core theory can be ...
-2
votes
2answers
117 views

Are there enough jobs for everyone? [closed]

If people work to get money/gold, and the money/gold is limited, then does that mean it is impossible for everyone in the world be employed?
-2
votes
2answers
48 views

How to write down a normal form of the game with information set?

How can we write down a normal form for this following game with information set? (The picture is modified from a picture from Wikipedia.)
-2
votes
2answers
36 views

Why can we replace dependent variable y with the residuals e?

I don't understand why we can replace y with e: Mainly, why can we simply replace y with e, given that y is defined as: Thanks ...
-2
votes
1answer
58 views

Marginal Profit Derivation [closed]

Find the marginal profit of a firm with a profit function: $$P(q) = -192q + 88q^2 - 16q^3$$ I got $$\frac{dP}{dq} = -192 + 176q - 48q^2$$ However, the solution reads $$ \frac{dP}{dq}= -4(q-2)(q-...
-2
votes
1answer
131 views

Sub-game perfect nash equilibrium: why is the first choice not included? [closed]

I don't get the definition of subgame perfect Nash equilbrium. A subgame does not include the entire game which begins at the very first choice made by some player. A subgame perfect nash equilibrium ...
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votes
1answer
632 views

Is this answer correct for opportunity cost? [closed]

Shouldn't the answer the question be $0. Because you arent really giving up anything?
-2
votes
1answer
52 views

Why does econometric models usually have higher accuracy than using other method, show one example with references that shows this [closed]

Why does econometric models usually have higher accuracy than using other method, show one example with references that shows this? Why this is happening while all these economics method is using ...
-2
votes
1answer
22 views

Steady state growth of output

In the long run Solow steady state, the growth rate of output in a country is g + n. If there is some other country with exactly the same properties of the first country and the same initial ...
-2
votes
2answers
62 views

Who set the price on product in the USA?

I was asking a buddy a question about pricing and he said that you can't control your own pricing. The context to this question was, I said if you tax firms more, then they're going to raise the ...

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