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Four honest and hard-working computer engineers are sipping coffee at Starbucks. They wish to compute their average salary. However, nobody is willing to reveal an iota of information about his/her own salary to anybody else. How do they do it?
My cousin Alyssa works at a gas station. Initially she was paid $10 per hour and requested to only work 25 hours per week. After 1 year on the job she got a pay raise to $12 per hour and requested to work 35 hours per week. Why does Alyssa want to wo..
Include how markets will allocate goods and services if not by price. What other problems might the other allocation methods create?
Income per person exceeds $25,000 in many countries, but it is below $1,000 per person in many other countries. Based on the Solow growth model, suggest at least four possible explanations for this gap in living standards.
Suppose that the depreciation rate increases in the Solow growth model. Using a diagram, determine the effects of this on the quantity of capital per worker and on output per worker in the steady rate, Explain the economic intuition behind your resul..
You and your friend are watching a Baseball game, the teams are X and Y, assume you agreed to give your friend $ 44 if his/her team “Y” wins, also he/she agreed to give you $ 44 if your team “ X” wins, probability of team X wins = probability of team..
The marginal product of labor is 10 and the marginal product of capital is 20. If the wage rate is $10 and the price of capital is $5, is the firm using the right balance of capital and labor? Explain why or why not. If why not, which input should th..
What is the relationship between a perfectly competitive firm's MRP curve for an input and that firm's demand curve for that input?
Determine whether the following transactions involve spot exchange, contracts, or vertical integration. Explain.
Let Kt denote the quantity of capital a country has at the beginning of period t. Also suppose that capital depreciates at a constant rate d, so that dKt of the capital stock wears out during period t. Calculate the quantity of capital at the beginni..
Discuss why workers join unions? What implications would this have for the organization that wishes to remain non-union? Would you join a union? Why or why not?
If you put all your money in IBM, what is the probability that you will be able to sell it one year from now at a positive profit?
BMW of Colorado advertises on the radio that it has been owned and operated by the same family and in the same location for over 30 years. It then makes two claims: first, that is has lower overhead than other nearby auto dealers because it has owned..
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