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Use the concept of marginal utility to explain the following: Newspaper vending machines are designed so that once you have paid for one paper;
Her marginal utility from the third football ticket is twice as much as her marginal utility from the second soccer ticket.
What effort does the principal want to induce when effort is not observable? What is the optimal contract for the principal?
Global Economic Watch Go to the Global Economic Crisis Resource Center. Write a summary of an article about a price index in a foreign country.
Global Economic Watch Go to the Global Economic Crisis Resource Center. What does the author mean by gross domestic transactions?
Consumer Price Index Calculate a new consumer price index. Calculate the current year's cost of market basket and the value of the current year's price index.
GDP Price Index The health expenditure component of GDP price index has been rising steadily. How might the index be biased by quality and substitution effects?
Consumer Price Index One form of the CPI that has been advocated by lobbying groups. Why should the BLS produce such an index for the elderly?
GDP and Depreciation What is gross about gross domestic product? Could an economy enjoy a constant-or growing- GDP while not replacing worn-out capital?
Both goods have been decreasing in price and improving in quality. What problems does this pose for people responsible for calculating a price index?
Explain why net inventory increases are counted as part of GDP. Discuss why it is not sufficient to measure the level of inventories only for the current year.
Leakages and Injections What are the leakages from and injections into the circular flow? How are leakages and injections related in the circular flow?
Why intermediate goods and services usually are not included directly in GDP. Are there any circumstances under which they would be included directly?
Compare and contrast what the leading indicators in the two countries are forecasting.
How are economic fluctuations linked among national economies? Could a recession in the United States trigger a recession abroad?
Why doesn't the National Bureau of Economic Research identify the turning points in economic activity until months or even a year after they occur?
The National Economy Why do economists pay more attention to national economies than to state or provincial economies (such as California or Ontario)?
Bureaucracy and Representative Democracy firm is described as combining managerial coordination. Why Does similar behavior occur in government bureaus? Explain.
What was the government's argument in the Microsoft trial and what was the company's defense? Which side prevailed?
Disincentives How does the implicit tax on earned income affect work incentives? How do some people avoid the implicit tax?
Consider discrimination in schooling, for example. How would researchers detect such discrimination?
Poverty and Age Poverty among the elderly fell dramatically between 1959 and 1974 and has continued. Why have the experiences of these two age groups differed?
What government assistance programs does the Census Bureau consider when calculating household income? What programs are ignored?
Why should the government set a goal of reducing the marginal social cost of pollution to zero in industries with fixed production technology?
According to the article, what are some differences between work by boys and girls in Indonesia?