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What is the benefit of having an autarky economy.
Explain in detail.
Step by step
Solved in 2 steps
- Evaluate the one specific law which states that the marginal utility of a good orservice declines as more of the good or service is consumed in a specific timeperiod.Illustrate the Law of Equi-marginal roles in terms of total utility andmarginal utility.In economics terms what is autarky. Please explain it in more than 150 words.
- Discuss The intrinsic value of goods among the physiocrats.Tom had an "absolute need" for web help and therefore was ready to "pay anything" to get it. If this were true, what shape would his demand curve have? Why isn't this realistic?this week you have gone to two parties. assume the total utility you gained from these parties is 100 utils. then you go to a third party, and your total utility rises to 110 utils. what is the marginal utility of the third party attended per week? given the law of diminishing marginal utility, what will happen to total utility and marginal utility when you go to a fourth party this week?
- You were presented with a utility maximizing rule which states: If you always choose the item with the greatest marginal utility per dollar spent, when your budget is exhausted, the utility maximizing choice should occur where the marginal utility per dollar spent is the same for both goods. That rule is expressed as follows: Group of answer choices (The marginal utility associated with good 1 / the price of good 2) = (the marginal utility associated with good 2 / the price of good 1) % change in price / % change in quantity (The marginal utility associated with good 1 / the price of good 1) = (the marginal utility associated with good 2 / the price of good 2) The marginal utility per dollar of good 1 > the marginal utility per dollar of good 2.[Related to Solved Problem 10.4 on page 330] In an article in the Quarterly Journal of Economics, Ted O’Donoghue and Matthew Rabin make the following observation: “People have self-control problems caused by a tendency to pursue immediate gratification in a way that their ‘longrun selves’ do not appreciate.” What do they mean by a person’s “long-run self ”? Give two examples of people pursuing immediate gratification that their long-run selves would not appreciate. Based on Ted O’Donoghue and Matthew Rabin, “Choice and Procrastination,” Quarterly Journal of Economics, February 2001, pp. 125–126.Explain why the lifetime budget constraint must be satisfied as a strict equality