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Mayor Grinch imposes a $1 tax on Zlurp. What is consumption per person now? Calculate consumer surplus, the external cost, government revenue and total surplus per person. Consumer surplus (6-3)X3/2=4.5 GM Revenue: (4.5+3.5)le2=4 There is no external cost, total surplus: consumer surplus.
A small consulting firm is only interested in hiring College graduates (denoted by S), but it does not know how many it should hire in order to be profit maximizing. Assume there is a competitive wage of $20 per hour and the production function is F(..
Consider the application of the IS/LM model to the Great Depression. In 2002, Ben Bernanke was speaking for the entire Federal Reserve Bank and admitted to mistakes in the policy response to the economic downturn in the 1930s. Recall that the data sh..
Compare and Contrast Cuba and the Bahamas based on there ECONOMIC GROWTH
A consumer has utility function given by u(x_1, x_2) = Squarerootx_1x_2. Suppose the price of good 1 falls from $5 to $2. while the price of good 2 and the consumer's income remain constant at $10 and $100, respectively. Find the substitution, income..
sales in joint facilities are lower than sales in two separate facilities. Elucidate what do these numbers imply for the decision of when to open a shared facility versus two separate facilities.
What is globalization (please define it both as a process and outcome)? What factors can you identify in explaining why globalization occurred? How do you assess its impact upon both rich countries and poor ones, in particular, the issue of inequalit..
A landlord owns a number of rental properties and wants to hire a property manager to do general maintenance.
A group of individuals each face a 1% probability of suffering a loss of $10,000, a 4% probability of suffering a $1,000 loss, a 20% probability
What are the important factors distinguishing these two economies from population growth, human capital, political systems etc. What the future holds?
Under what conditions can we be sure that perfect competition leads to a more efficient use of resources tan monopoly? How prevalent are these conditions in the real world? As an employer wants to reduce the production cost during the economic recess..
Why is there so much advertising in monopolistic competition and oligopoly? How does such advertising help consumers and promote efficiency? Why might it be excessive at times?
Suppose you have two part-time jobs, babysitting and pizza delivery. After younger babysitters start working for less, banysitting clients pay only $8 insteaf.
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