# All Questions

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### 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 ...
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? ...
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 ...
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 ...
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 ...
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 ...
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 ...
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?
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, ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
182 views

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 ...
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 ...
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 '...
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 ...
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 ...
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: ...
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 ...
36 views

### Meaning of Exchange rate

Does exchange rate of local currency relative to US dollar mean LOC/USD or USD/LOC ?
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 ...
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 ...
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 ...
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 ...
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?
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. ...
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....
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 ...
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?
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.)
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 ...
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-...
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 ...
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?
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 ...