An increase in resources available would decrease potential GDP and the long-run aggregate supply curve
Indicate whether the statement is true or false
FALSE
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The difference between a Euroloan interest rate and Eurodeposit interest rate is called
A) net interest rate. B) the forward premium. C) net profit rate. D) the spread.
Joseph has the utility function U(F,H) = 10F2H, where F is the quantity of food he consumes per year and H is the quantity of housing per week. Suppose the price of food is $10 and the price of housing is $5, while Joseph has an income of $150/week
a. Calculate Joseph's MRS as a function of the quantities F and H. b. Write out Joseph's constrained optimization problem with the information provide d. c. Using the substitution method, solve for Joseph's optimal consumption bundle of food and housing. d. Show that at the optimum, Joseph consumes the bundle along the budget constraint where MRS = MRT.
A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and pays them per store opened. At the end of the quarter, the company notices a many of the new stores' sales volume fail to meet expectations. To incentivize the consultants to instead focus on opening profitable stores, the company decided to alter the
compensation to a percentage of the profit earned per new store. This puts the consultants a. In a less risky position b. A more risky position c. In risk neutral position d. None of the above
All points on the production possibilities curve represent efficient levels of production
a. True b. False Indicate whether the statement is true or false