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1. Use the four quadrant diagram of the Classical model with the production function to determine:(a) the effect of a decrease in government taxes on Y, W/P , R/P, S ,r.(b) the effect of decrease in capital (K decrease ) on Y; W/P , R/P, S ,r
2. Consider a country where the velocity of money is constant. Real GDP grows by 3% per year, the money stock grows by 4% per year, and the nominal interest rate is 3%.
Using the approximate Fisher Equation what is the real interest rate in the economy specifiied above?
Compare the automotive manufacturing industry today to the automotive manufacturing industry of the 1950's. Applying the economics of price and output, what is the difference between the industry of today and that of the 1950's.
Amos Excavating Inc. is purchasing a bulldozer. The equipment has a price of $100,000. The manufacturer has offered a payment plan that would allow Amos to make 10 equal annual payments of $15,582, with the first payment due one year after the purcha..
Calculate output, price and economic profit (show how you get there) and point price elasticity of demand at this output level
What is a federal government budget deficit? What is the national debt? How does a budget deficit affect the economy?
Use the following information for a perfectly competitive firm and the profit-maximizing input-combination rule to identify how many workers firm will employ to maximize profits.
Suppose a product sold in a competitive market is subject to a government price control. Suppose the regulated price is less than the free market equilibrium price.
What is price elasticity? How does Moore's Law relate to this concept? What is sepcial about falling chip price?
1. Who has absolute advantange in chocolates Who has absolute advantage in shirts 2. Who has comparative advantage in chocolates Who has comparative advantage in shirts 3. If these nations trade freely, what does the U.S. import from Switzerland
Briefly discuss and illustrate the circumstances under which the minimum wage would (1) not lead to unemployement, amd (2) not cause a reduction in the total earnings of low-wage workers who are still employed.
Suppose perfect competition. Yoland is a small nation that takes world value of corn as given. Its domestic supply and demand for corn is given by the following;
The mine operates on a three shift depends per day , 6 days a week. Allows for availability the mining system operates 5,000 hours per year.
An emissions fee is paid to the government, whereas an injurer, who issued and held liable, pays damages directly to the party harmed by an externality. What differences in the behavior of victims might you expect to arise under these two arrangem..
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