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This week, we are going to talk about bubbles, specifically, are we in one now? This in't really about growth - its more about the business cycle, but I found it particularly interesting. While much of the podcast focuses on San Francisco, there are obvious parallels to Seattle. Please listen to the following Planet Money podcast (Episode 656: Bubblelicious). What did you find most interesting/surprising? Are we in a bubble?
currently there is an incumbent monopoly in a market. a potential entrant may enter. the incumbent can spend x dollars
Suppose that the total revenue received by a company selling basketballs is $840 when the price is set at $15 per basketball and $840 when the price is set at $10 per basketball. Without using the midpoint formula, can you tell whether demand is elas..
Suppose that you take $150 in currency out of your pocket and deposit it in your checking account. Assuming a required reserve ratio of 10%, what is the largest amount (in dollars) by which the money supply can increase as a result of your action?
Consider the case of a poor country that receives foreign aid. The aid consists on donations to consumers which represent an increase in their lifetime income of 5%. One of your economist friend is against this foreign aid program. He says that it do..
Suppose the value of the cpi is 1.100 in year one 1.122 in year two, and 1.133 in year three. Assume also that the price of computers increases by 3% between year one and year two, and by another 3% between year two and year three. the price level is..
In The Wealth of Nations, Adam Smith wrote, "Every individual endeavors to employ his capital so that its produce may be of greatest value. He generally neither intends to promote the public interest, nor knows how much he is promoting it.
Other things being equal, the markup above marginal cost that a monopolist charges will be:
The government often intervenes when private markets fail to provide an optimal level of certain goods and services. For example, the government imposes an excise tax on gasoline to account for the negative externality that drivers impose on one anot..
Using the expenditure approach, gross domestic product equals:
When several people died because of poisoned capsules of Tylenol pain reliever, strict government regulations were enacted to control the packaging of retail pharmaceuticals. Would private markets have reached the same result?
Which of the following could be the price elasticity of demand for a good for which a decrease in price would decrease revenue?
The three problems of resource allocation are faced by
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