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In 2008, India experienced a surge inflation exceeding 11 percent, large government deficits. Distinguish between the crowding-out effect and the Ricardo-Barro effect. How are the two effects related?
Describe the use of Gross Domestic Product (GDP) to measure the business cycle. Describe the roles of government bodies that determine national fiscal policies.
What two theories would explain the large Federal Government deficits in the US in the 1930s and in 2011? Why is only one of these theories capable of explaining the large deficits in the US in both
This being the case, how do we go about determining whether (for a given country) free trade promotes a country's economic welfare?
The U.S. clearly is a mixed economy, meaning that elements of both capitalism and socialism are present. What are the number of prominent social programs in place in the United States?
You can increase the price of a good. Will workers be in favor of protection? Why? How about the owners of the firms? Why?
November 1919 the US price level rose a little less rapidly than in the previous three years. How much of this decline in inflation can be attributed to Fiscal Policy?
How much would the advertising expenditure have to be increased to compensate for the drop in population?
Using the Edgeworth box, trace out the changing allocation of resources. Extreme endowment changes. What would happen if the labor supply increased beyond 1200 hours?
Gains from trade. Draw the production possibility frontier. How does the change in relative prices after trade affect production? Depict the gains from trade.
Comparative advantage. In which good does Home have the strongest comparative advantage? In which good does Home have the least comparative advantage?
What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output level is being produced?
Which Inputs are fixed inputs? Which are variable inputs? How many units of the variable input should be used to maximize profits?
At what interest rate would the loanable funds market among the three students be in equilibrium? At this interest rate, which students would borrow and which would lend?
Suppose JVC adopts a first-degree price discrimination policy. What prices should it charge to maximize revenues? What are JVC's revenues using this strategy?
What is the highest profit or lowest loss available to this firm? Should this firm operate or shut down in the short run? Why? What is the relationship between marginal revenue and marginal cost as th
they can produce the two goods jointly with costs described by the function C(q1, q2) = 45 + q1 + q2. Are there scope economies in this case that would justify the merger?
Using your understanding of shifts in supply and demand, will this turn out to be a helpful or hurtful move on the Kenyan government's part?
The money at 9% interest rate to finance the purchase, and its tax rate is 30%. Calculate the price of the machine, which will make purchasing or leasing to be equally costly.
The output price for health care services has increased. Holding all else equal, what effect does this have on the labor market for health care employees?
What country has the absolute advantage in the production of each good? Which country has the comparative advantage.
If households spend $55 billion on goods and $45 billion on services, how much in revenues do businesses receive in the product market?
What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output.
Find the Hicksian (compensated) demand for X and Y. What is the minimum expenditure necessary to achieve a utility level of U=100 with Px=5 and Py=20?
Suppose a monopolist faces two demand schedules P1= 36 - Q1 and P2 = 18 - Q2/2and TC = 16Q. Determine the optimal profits, prices, and output level for the following situations.