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According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%. What percentage change in the CPI up until August is accounted for by the changes in the prices of food, clothing, and medical care? Given the changes in food, clothing, and medical care, by what percentage did the prices of the other items in the CPI basket change? Why did the prices of the other items change?
Illustrate what other additional information do you need, and how would you proceed if you had that information.
Laura sells mushrooms and strawberries to tourists. If Laura spends the morning collecting only mushrooms, she picks 8 pints; if she spends the morning picking strawberries, she collects 6 pints. If she picks some of each, however, she can harvest mo..
Determine the range of prices for which the firm incurs a loss but continues to produce. Also determine the range of prices for which the firm earns a profit.
Using present value analysis math, discuss the cost and benefit of paying for 4 years of college. Make any assumptions you want about the market interest rates. Use math and discuss. Is going to college worth it?
Who benefits when retailers in the United States source textiles from low wages countries such as Bangladesh? Who might lose? Do the gains outweigh the losses?
Explain how do the life-cycle hypothesis also the permanent income hypothesis resolve the seemingly inconsistent pieces of evidence regarding consumption behaviour.
One of the assumptions of monopolistic competition is that firms produce differentiated products. What does this assumption imply about the demand curve facing a representative firm?
A chemical company determined the need for a chemical additive that will improve their product by 20%. The company’s CEO arranged to purchase the additive through a 5-year contract at $7,000 per year, starting 1 year from now. He expects the annual p..
By how much should the U.S. automakers adjust the price of their automobiles if they wish to increase the volume of their sales by 9.2
Discuss the positive aspects of globalization, and contrast these with the negative aspects of globalization from the perspective of a small business. Be sure to address the pros and cons of outsourcing in your response.
Suppose the consumption expenditure is C = $100 billion + 0.9*Y. Investment (I) is $100 billion, government spending (G) is $50 billion and exports (X) are $100 billion. Imports depend on the level of income as follows: M = 0.1*Y. Calculate the equil..
Illustrate difference between economies of urbanization and economies of localization. Give examples of each.
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