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Consider a two period endowment economy with government. Suppose the government can impose lumpsum taxes and issue public debt. i) De?ne a sequential competitive equilibrium for this economy. ii) De?ne a Arrow Debreu competitive equilibrium for this economy. iii) Find conditions such that the allocations are the same in the Sequential and Arrow Debreu equilibrium. Hint: Find some condition on q0.
Builders of a hybrid car declared it would build a car that would get 180 miles per gallon of unleaded gas. They figured it would cost $40,000 each car to build.
Write a paper of 500 words, not including the title and References page, that analyzes the need for health care reform. Include the following in your paper: Identify concerns about cost, quality, and access to the current U.S. health care system. Ans..
For each of the following changes in the macro-economy, show how to think about them using the IS curve, and explain how GDP is affected in the short-run. The government offers a temporary tax credit: for each dollar of investment that firms undertak..
Using an aggregate supply/aggregate demand model chart the short run effects of decreasing government spending (assuming you began in a short run and long run equilibrium)
Cadie's Candy Shop (CCS) makes a special kind of candy that has become very popular with its customers. The marginal cost of producing this candy is constant. It is equal to $3.5 per box. At a markup of 80%, what price should CCS charge for its candy..
The political independence of central banks is an increasingly important issue in the global economy. What is the global trend in the political independence of central banks? Is this good or bad for the global economy? Explain with examples.
"Illustrate what is meant by the term 'utility,' and how does it relate to purposeful behavior." In one to three pages, fully explain your answer in a way that shows your understanding of "utility" and human behavior.
Assume that a nation’s marginal propensity to consume is 0.9, and that its potential GDP exceeds its actual real GDP by $5000. By how much should that nations’ government change taxes in order to completely close that GDP gap?
Why do oligopolies exist? Explain the characteristics of an oligopolists whose products you own or regularly purchase. what distinguishes oligopoly from monopolistic competition?
You are a builder of fiberglass boats in very competitive markets. Fiberglass is derived from crude oil which has recently risen in price. Using diagrams, show what happens to the cost curves of your firm and to the market supply curve due to the inc..
In the replacement analysis under various circumstances. Briefly summarize what your text calls Techniques 1 (Is Appropriate When Replacement Repeatability Assumptions Hold), 2 (If the replacement repeatability assumption holds, compare EUAC of the d..
You are going to display what happens in the long run in perfectly competitive markets when firms are operating at a loss. Demonstrate the shift that will occur in the market in the long run if all firms in this market are operating at a loss. Identi..
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