Economics (7th Edition) (What's New in Economics)
Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 1, Problem 1.2.9PA
To determine

Examining productive efficiency and allocative efficiency of the postal services.

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Given the following graph, calculate how many cakes we would need to give up to produce one cookie (Round your answer to 2 decimal places): Cakes 50 40 Cookies 30 20
Briefly explain the term incremental innovations. Which companies in terms of the size (small, medium, large size) have more economic incentives to produce these?
According to an article on Barrons.com, "Investment firms are starting to use Al (artificial intelligence] to execute trades [of stocks, bonds, and other financial securities], manage portfolios, and provide personalized service to their clients." The article notes that other financial firms, including banks, insurance companies, are using Al to decrease costs and increase the accuracy of compliance with government regulations, and to "free employees to work on more valuable jobs." Source: Scott Likens, "How Artificial Intelligence is Already Disrupting Financial Services" Barrons.com, May 16, 2019. Does the use of Al increase or decrease labor productivity? Increase, because the use of Al represents technological advance. Decrease, because the use of Al increases the stock of capital Increase, because the use of Al raises investment returns. O Decrease, because the use of Al reduces the number of work hours in the economy.
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