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votes
1answer
29 views

Unions, right to work laws [closed]

Can anyone explain what right to work laws are? along with any thoughts about unions. Do they actually benefit the worker and overall market? Thank you.
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votes
1answer
95 views

Is there any widely accepted downsides for Cuban system?

The Cuban political, social and economic systems under communism are known for having a good medical system and high quality medical workers. Cuba also has a good educational system. The country also ...
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votes
2answers
63 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.)
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votes
2answers
37 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-...
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votes
1answer
84 views

The difference between making money by profit and by earning it [closed]

Suppose there were no taxes (which only makes things more complicated) and suppose I ask ten people if they want to get money by cleaning up houses for 8 euros per hour. They agree. Now I on my turn ...
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votes
1answer
132 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
697 views

Is this answer correct for opportunity cost? [closed]

Shouldn't the answer the question be $0. Because you arent really giving up anything?
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votes
1answer
53 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
34 views

Real Exchange Rate (Euro/Sterling)

What will be the real value of the Euro/Sterling exchange rate if: Given that: Index of UK prices$=118$, Index of Euro-area prices$=110$, Nominal Euro/Sterling exchange rate$=1.58$ and UK marginal tax ...
-2
votes
1answer
28 views

How does the stock market's allocating resources differ from price signalling? [closed]

What does Erian mean that "You allocate uses of funds with sources of funds. And if you price that well, you get an efficient outcome."? Outcome to what? What does he mean the stock markets ...
-2
votes
1answer
132 views

In Trailing Stop-Limit Orders, what does the Limit Offset mean?

I don't understand the "limit offsets" below that I colored red. Why do you need them? In Questrade's example, if the stock rises to your stop price of \$21, then you will be buying at \$21. So why ...
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votes
2answers
62 views

What caused the sharp increase in subprime-mortgages moving to punishingly high-rates in 2007, (which lead to defaults and a financial crisis)

I recently watched The Big Short, which added to my existing-but-superficial understanding of the 2007/8 financial crisis. One major component of that crisis was a relatively sudden and sharp rise in ...
-2
votes
1answer
33 views

During the COVID pandemic, why can't helicopter money be used to replace lost income for those barred from working?

In "normal times" my understanding is that one way Central banks create money is by extending a loan. The loan ensures money will be soaked back up in future, thus preventing inflation / devaluation ...
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votes
1answer
26 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
64 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 ...
-2
votes
1answer
27 views

finding optimal values of quantities through utility function when MRS is 1 and price ratio is 1:2 [closed]

so this is a somewhat simple question but im stumped, here's why: given the utility U=2$X_1$+2$X_2$ where $P_1$$X_1$+$P_2$$X_2$=20 and $P_1$=0.5$P_2$ the question asks to find optimal values of $...
-2
votes
1answer
378 views

An example of preferences over a countable set that cannot be represented by a utility function

Give an example of preferences over a countable set in which the preferences cannot be represented by a utility function that returns only integers as values. I know a utility function exist that ...
-2
votes
2answers
112 views

why isnt private sector savings defined as $S=Y-T-C-I$?

why isnt private sector savings defined as $S=Y-T-C-I$ ? afterall, savings is the money you have left over after you net off from your income ALL of what you have paid out. $Y, T , C$ And $I$ are the ...
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votes
1answer
829 views

Intuitively, why is Profit = (Price $-$ Average Cost) $\times$ Quantity?

Sources: p 289, Principles of Microeconomics (7 Ed, 2014) by N G Mankiw p 259, Modern Principles of Economics (2 ed, 2011) by Tyler Cowen, Alex Tabarrok Definitions: Profit $:=$ Total Revenue $−$ ...
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votes
1answer
58 views

Microeconomics undergraduate ELASTICITY help (differentiating log-linear demand curve) [closed]

How do you show that the price elasticity of demand is a constant if the demand function is log-linear? To show this, how do you differentiate the log-linear demand curve to determine dQ/dp, and ...
-2
votes
1answer
48 views

Can the U.S print infinite money? [duplicate]

I know that a country can't simply print money to pay debt, since it would only lower the value of the money, i. e. cause inflation. But what about the U.S? Since their new printed money is very ...
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votes
1answer
50 views

Why did VelocityShares Daily 3x Inverse Natural Gas ETN skyrocket from 900 to 25,000 in 2 days? [closed]

Why Did DGAZF Go From \$400 To \$24,000 In Just A Few Days? DGAZF is the over-the-counter version of the now delisted VelocityShares Daily 3x Inverse Natural Gas ETN (DGAZ). Back in June, I wrote ...
-2
votes
1answer
57 views

In 2020 depression and pandemic, how do retail traders still have money to rally up US stock market? [closed]

Starting from June 3 2020, US stock market has soared back to its 2020 high. Many stocks sky-rocketed even though their fundamentals didn't improve like airline, cruise ship, oil stocks. "Car renter ...
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votes
2answers
63 views

What is the Federal Reserve's “money printing” impact on inflation [closed]

In wake of Coronavirus, when the Fed announces it is printing \$2.2T, what is the impact on inflation? Does the M2 increase by \$2.2T? (Thus a 12.5% increase in inflation? That can't be right?) Is ...
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votes
1answer
52 views

Cobb-Douglas function homotheticity

I've been given the Cobb-Douglas utility function: $\ u(q_1, q_2)=a\ln q_1+b\ln q_2=q_1^aq_2^b \ $ If I want to prove homothetic preferences, I use the following condition: $\ u(\lambda q_1, \...
-2
votes
2answers
44 views

Nash Equilibrium and SPNE [closed]

Firms Alpha and Beta serve the same market. They have constant average costs of $2 per unit. The firms can choose either a high price ($10) or a low price (5) for their output. When both firms set a ...
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votes
2answers
72 views

What stops this from happening under fractional reserve currency [closed]

Bank A has $1. Bank A creates $10 fractional reserve money and deposits into bank B. Bank B now has $10. Bank B creates $100 and deposits into bank A. Repeat What stops banks from creating ...
-2
votes
2answers
78 views

Are currencies equilibrating?

I was travelling recently and realised that dollars, euros, British pounds and Swiss francs all have more or less the same worth (i.e. 1 dollar $\cong $1 pound $\cong$ 1 euro $\cong $ 1 chf). This was ...
-2
votes
1answer
72 views

find the equilibrium level of Y [closed]

Assume that the LM curve for a small open economy with a floating exchange rate is given by Y = 200r – 200 + 2(M/P), while the IS curve is Y = 400 + 3G – 2T + 3NX – 200r. The function for NX is NX = ...
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votes
2answers
88 views

Microeconomy, monopoly, maximum profit - two different answers when solving exercise in two different ways

Suppose that monopoly produces product $X$. Let $MC = 20$, Quantity demanded function is given by equation $Q_d = 600 - 2P$ (where $Q_d$ - demand curve, $P$ - price). Calculate the amount of ...
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votes
2answers
1k views

Find Engel Curve with a Cobb-Douglas [closed]

I have $U(x,y)=xy$, $p_1=4$ and $p_2=1$. Income is unknown. Where do I start?
-2
votes
1answer
2k views

How can I show that the following function is homothetic? [duplicate]

$y= (x_1x_2)^2-x_1x_2$ Let $x_1x_2=z$ then $y=z^2-z$ and $y'=2z-1$ If I can prove that y' is monotonically increasing, does that prove y is a homothetic function? if so then how can I prove that y' ...
-2
votes
1answer
78 views

Labor market supply optimization [closed]

How do I optimise this type of problem? I have read something about applying the chain rule to find the first order condition but can't imagine how to express it or solve it. Can somebody give me a ...
-2
votes
1answer
531 views

How many rare Euro coins are there? [closed]

After reading the on-topic text, I think this question fits here. If it doesn't please tell me. I was recently wondering if checking my coins for rare coins would make any sense or just waste my time....
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votes
1answer
49 views

Finding the minimum and maxium price given utility index [closed]

Say you have the expected utility index $U(Y ) = \sqrt{Y}$ and an initial wealth $Y = 10$. Consider the lottery with a payoff of $10$ with probability $\pi\in (0,1)$ and a payoff of $5$ with ...
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votes
1answer
242 views

What does this formula stand for? [closed]

W/Vmp = ? I think it is the marginal product....but I have really no clue....any help on this?
-2
votes
1answer
326 views

Are these preferences convex? [closed]

$Let$ the utility function defined to be : $$U(x,y)=-x^2-y^2$$ I believe they are convex, the set which is preferred to a specific indifference curve is convex, but the answer sheet says that it is ...
-2
votes
1answer
85 views

Do bankers have important and difficult jobs? [closed]

Does the finance system matter? Do bankers have important and difficult jobs that protect against destroying the economy from some paperwork reason?
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votes
1answer
199 views

Question on monopolist (involves simple calculus)

QUESTION: Consider the problem of a monopolist that sells its product in two different markets $m$, with $m=1,2$. Each market has an aggregate demand function given by $1200−α_m\cdot p_m$, where $p_m$ ...
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votes
1answer
199 views

Finding Nash's Equilibrium in mixed strategies [closed]

How to find the mixed strategy equilibrium in the following game: ...
-2
votes
1answer
229 views

Reserve Ratio Requirements and Money multipliers [closed]

Draw the T-accounts for Fred's Bank if the FED buys a $20,000 treasury security from Fred and Fred puts all the money he gets for it in the bank. Assume the reserve requirement set by the FED is 8%. ...
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votes
0answers
31 views

What are the ways to improve national income in this Covid pandemic situation? [closed]

What are the ways to improve national income in this covid pandemic period? Ps: I'm new to economics stack exchange, I don't know this question fits to the site standard or not. Thanks a lot
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votes
0answers
24 views

When does slutsky matrix is negative semidefiniteness? [closed]

I thought that would always be negative because of propreties os income-compensation function- concave in price-. What change must occur for the matrix to be negative semidefiniteness.
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votes
0answers
19 views

Litterature survey website for macro paper [closed]

do you know any Litterature survey website for macro paper that summarize the state of the art on a particular topic ?
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votes
0answers
29 views

Income consumption curve to find preferences [closed]

Part B These 2 individuals can surely have similar preferences for example min{x,5y/3}. However, I was wondering if I could solve part B through the Income Consumption Curve. Any Income consumption ...
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votes
0answers
45 views

What are downsides of taxing based on networth?

Given that social inequality is a big deal these days and I do believe in reducing the wealth gap, what are the downsides of having variable taxes based on someone's networth? For example, if someone ...
-2
votes
2answers
64 views

What's a “correct price” really? Does it exist?

Lately I've been thinking about the concept of price setting in market economy. There are various (perhaps naive) view on this such as: The price is always the optimal for the buyer and the seller. ...
-2
votes
1answer
49 views

Is it detrimental if self-interest is not acknowledged in resource allocation situations?

Please note: I am doing a literature survey/review, and I would like references to published work. I contend that if we are dealing with a resource allocation mechanism that allocates scarce ...
-2
votes
1answer
31 views

What is a substitution pattern?

I know what substitution effect is but I am not sure what substitution patterns are. To give some context the author says the following: "I analyze the substitution patterns between exchange ...

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