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5

Confirmation bias While there could be economic reasons for some of these phenomena, I think you are very likely experiencing confirmation bias. You are retelling personal stories that fit the narrative of the proper/standard ones always seem to get sold out first, and the ugly/disgusting ones are always in stock. I have many experiences where I went to ...


5

No. And yes. For any set $X$ we have (by definition) $$X^k=\underbrace{X\times\cdots\times X}_{k\text{-times}}=\{(x_1,x_2,\ldots,x_k)\mid x_i\in X\text{ for }i=1,\ldots,k\}.$$ Now let, for example, $m=2$ and $n=3$. Then $$(\mathbb{R}^m\big)^n=(\mathbb{R}^m\big)^n$$ $$=\big(\mathbb{R}^2\big)^3=\Big\{\big((x_1,x_2),(x_3,x_4),(x_5,x_6)\big)\mid (x_1,x_2)\in\...


4

I am unsure whether this qualifies as economics, but it would be something that might be discussed in business school. Furthermore, the answer is almost entirely engineering. As such, I will do this briefly. Those “old” factories are probably in the same physical space as their current factories. They would need to build new facilities. They would need ...


2

You have to be careful when comparing different utility functions. For example the function $$ v(C_A) = - \frac{1}{C_A}, $$ and the function: $$ u(C_A) + u(C_B) = - \frac{1}{C_A} - \frac{1}{C_B}, $$ cannot simply be compared. The first represents preferences over one good, while the second gives preferences over two goods. So if you say: $$ u(C_A) + u(C_B) &...


1

The trick is to apply the total derivative. Going from $Y = C(Y-T(Y)) + I(r) + G + NX(Y)$, we have: $$ \operatorname{dY} = \underbrace{\frac{\partial C(\cdot)}{\partial Y}}_{\equiv C_Y > 0} \cdot \operatorname{dY} + \underbrace{\frac{\partial I(\cdot)}{\partial r}}_{\equiv I_r < 0} \cdot \operatorname{dr} \therefore \operatorname{dY} - C_Y \cdot \...


1

No under expenditure approach neither salary or wages are directly counted. An expenditure approach to GDP calculates GDP as follows: $$GDP=C+I+G+NX$$ Where $C$ is consumer spending on final goods and services at market prices, $I$ is the investment spending, $G$ is government spending and $NX$ are net exports. All wages and salaries are of course indirectly ...


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