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Next, suppose that the government establishes a price floor of $4.60 for wheat. What will be the main effects of this price floor? Demonstrate your answer graphically.
Each limousine costs$50,000. How many limousines should he purchase if the real interest rate is 4.5%? If the real interest rate is 5.5%.
Describe the costs incurred in the market failure in terms of who bears the costs and whether the costs are equally shared by federal, state, or local governments.
Compute the profit-maximizing levels of output and prices for the firms. Compute the profit-maximizing level of output and price for the industry if the duopolists merged and form a monopoly.
Comment on the philosophy that was used by the US Treasury secretary, that certain institutions have become, "To big to fail". Should the federal government.
The best level of output and price for this cartel. How much each firm should produce if the cartel wants to minimize costs of production.
A company has an investment project that would cost $10 million today and yield a payoff of $15 million in 4 years. (A.) Should the firm undertake the project if the interest rate is 11 percent?
Show the consequences of the policy in this situation on a new graph, again nothing changes in the equilibrium interest rate and level of saving and investment. Again evaluate the effects on long-ru
Compute nominal GDP in the base year and later year. Compute real GDP in the base and later years (in base-year prices).
What general principle or rule can you specify that would tell residents and hospitals when adding an incremental hour of residency training and work during a specific week no longer is a good idea
Contrasting the economic effects between the two time frames. Determine whether the demand for this product is inelastic or elastic in the short and long term, and explain your reasoning.
Calculate Jack's total variable cost (TVC), marginal cost (MC), and average variable cost (AVC) at these four levels of output.
If full employment requires an income level of 2,000, what (if anything) should the government do? Indicate both the direction of the spending change and the size of spending change?
Say the minimum wage was increased by $5/hr. Show in the diagram the result of this change, by changing the Isocost-Isoquant diagram you used for part (a). Show the new combinations of Labor and Cap
What are the marginal rates of substitution for each person at their endowment point? What is the formula for the contract curve? Draw an Edgeworth box and indicate the contract curve.
Show an optimal combination of capital and labor for a typical cobb-douglas production function using an Isocost-Isoquant diagram.
If the cash flow in year 1 was $320,000 and the increase thereafter was $50,000 per year, what interest rate was used in the calculation?
Suppose in the current presidential election, one candidate argues: "The government is extremely inefficient. To fix this, government spending should be substantially reduced." Evaluate this statem
$2,000 per year for years 21-45, given a 6.58% discount rate. Your company wants to purchase the proceeds from the lottery from Jim. What is the most that your company can offer?
How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent?
Monthly revenues need to be at least $15 million to cover its monthly costs. If News Corp. set its monthly subscription price for satellite Internet service at $55, how much revenue would it earn?
The price of per pizza is $10 and the price per burrito is $5. In equilibrium, Lisa consumes 4 pizzas. Using Lisa's utility function, calculate how many burritos she consumes.
Predict the effect of higher wood prices on the equilibrium price of new housing. Illustrate your answer with a graph that shows the initial point (a) and the new equilibrium (b).
If the elasticity of Canada's exports in relation to the real exchange rate is very low, will this rise in the world interest rate have a large or small effect on Canada's real exchange rate?