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Define yield, load factor, revenue, and profit. Explain the interaction between these 4 variables (for example, if an airline raises prices in an attempt to increase revenue, what is the likely effect on yield?).
Jerome says that he will spend exactly $25 each month on new apps for his mobile device, regardless of the price of apps. Jerome's demand for apps is
A company currently sells 60,00 units a month at $10 every unit. The variable cost every unit is $6. The company decided to raise the price about 10%.
A 10-year zero coupon $100 face value bond has yield of 6%. Through series of unfortunate circumstance, expected inflation rises from 2% to 3%. Assuming the nominal yield rises by an amount equal to the rise in expected inflation, compute the change ..
Consider two people involved in a marriage or relationship. If, when one person is caught cheating on their agreement, the other cheats once or goes on a one time spending spree, then they are using a:
In May 2010, the Reed Job Index reported that demand for new workers was growing, but wage and salary on offer of new jobs was declining. Economists argued this was strong evidence that the economy had entered the recovery phase of the business cycle..
While the population variances are unknown, we will assume they are equal.
In general, the marginal cost (MC) curve is U-shaped as you learned in the lectures and the textbook. However, exception exists. Please provide at least one industry as an example to illustrate that MC is not U-shaped. Explain briefly the shape of MC..
Solow Diagram and Transition Paths. Assume that initially an economy is saving at a rate that exceeds its golden rule saving rate and that the economy is in a steady state equilibrium. Suppose that the economy reduces its saving rate towards the gold..
What problem is the economy facing? Assume you are a governor on the Federal Reserve Board of Governors. What type of policy (easy money or tight money) would you recommend to fix the problem you identified in question 1? What could happen in the eco..
Economics has a notoriously bad reputation among students. They assume it will be dry, boring, and not relevant to their lives. They also think it's hard because the course content must be understood rather than memorized. Why do you think economics ..
In an application of the Harrod-Domar model, suppose the only final-goods industry in a country is the making of cotton shirts. The factories, machinery and warehouses used in production were purchased previously and are still worth $3 billion. What ..
If agricultural price subsidies have the effect of lowering resource costs for farmers, use a supply and demand graph to show the effects on the market for food. Illustrate what are the implications for American public health.
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