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Suppose that Benjamin and Elise both work at a large company in the accounting department. They both have been with the company for 8 years, both possess a BBA in accounting, and both are certified public accountants; however, Elise makes less money than Benjamin. Can we conclude from the information provided that Elise is being discriminated against? Why or why not?
Suppose there are two consumers, A and B. The utility functions of each consumer are given by: Using an Edgeworth Box, graph the initial allocation and draw the indifference curve for each consumer that runs through the initial allocation. Be sure to..
Consider a market with one large firm and many small firms. The supply curve of the small firms taken together is S(p) = 100 + p. The market demand curve for the product is D(p) = 200 - p. The cost function for the one large rm is c(y) = 25y. (a) Sup..
Do you think the MP (marginal productivity) figures in the presentation are based on a single variable factor, or all factors of production? Why? In the paper, what other input factors are necessary to make the holiday wreaths?
Suppose that taxes and transfers are fixed, so that a change in the government’s spending is equivalent to a change in its deficit. The multiplier is three. For each increase in the deficit of 100, interest rates rise by one percentage point. When th..
In 300 words, define what is meant by Civil Liberties vs. Civil Rights and how they are different;
If the marginal propensity to consume were 0.9, how large would each of the following need to be in order to restore full-employment equilibrium?
what effect would this change have on the wages in the two markets you illustrated in part (a)? what effect would the change have on the average wages of men and women?
Which of the following might most closely represent a monopsonist? In a monopsonistic labor market, the marginal-factor-cost curve is
An apparel manufacturer purchases cotton and other raw materials for the production of shirts. Would the sale of cotton from a cotton mill to the shirt manufacturer be included in the calculation of GDP? Why or why not?
A monopolistic competitor wishing to maximize profit will select profit will select a quantity where: If a firm is producing a quantity where marginal revenue exceeds marginal cost, the firm should ____existing levels of production, in order to____. ..
Toward the end of the recent recession, the economy was characterized by a ‘‘jobless recovery’’— output and hours worked were rising, but employment was not. Explain what may have been happening.
Why tax multiplier is smaller than the multiplier for the same amount of government spending? Please explain with the following data: $1 million tax cuts, $1 million increase in government spending, MPC=0.75.
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