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Over the last months, a growing score of economists have suggested that the Federal Reserve should raise interest rates (by reducing the money supply). Do you think that recent figures on employment and GDP growth lend support to such claims?
Using appropriate models or theories, explain the economic intuition (logic) behind the following events. An increase in money supply leads to a fall in short-run interest rate. An increase in real income leads to a rise In short-run Interest rate
Determine whether the following production functions exhibit constant, increasing or decreasing returns to scale. Show your work and explain.
Also during first year, cookie business made monetary outlays of $9,000. You may assume that re is no opportunity cost to Zach's time. What is economic profit and accounting profit.
Under what conditions would firms be likely to support an industry-wide advertising ban. Please provide a few examples.
You have borrowed $50,000 at an interest rate of 12%. Equal payments will be made over a three-year period. The first payment will be made at and of the first year. What will be the annual payment be?
The inverse demand curve for sugar is P = 100−Q. There are two firms, C and D, who produce sugar. Firms produce sugar using a technology with a cost function characterized by C(Qi) = 20Qi where Qi is the quantity produced by each firm. What is the Be..
Mr. Mallon would like to increase gross domestic product (GDP) while keeping unemployment, taxes, and inflation as low as possible. Should fiscal policy be a large part of the campaign, or should the focus shift to supporting the Federal Reserve and ..
If the number of suppliers in the micro calculator industry increases, illustrate what would we expect to happen.
There are three ice cream vendors who are deciding where to locate on a beach. The only decision that they have to make is where to locate the store that they have to run. There are 10 positions available on the beach and costumers are uniformly dist..
Larry works for Shannon as a salesperson. Shannon gave Larry a credit card with Larry’s name on it so that Larry could charge necessary business expenses to Shannon’s business account. Larry charged $1,000 in personal expenses, wholly unrelated to La..
Explain why the following are examples of monopolistic competition. There are number of fast food restaurant in town and they compete fiercely. some restauratheir hamburgeropen flames others fry their hamburgin addition some serve boiled fish sandwic..
Suppose the demand for a product is Q = 1200 – 4P; supply is Q= -240 + 2P. Say, marginal external damage is $12 per unit. What is the socially optimal quantity? How many more units will the free market produce? Calculate the deadweight loss associate..
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