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You are a manager of a large but privately held online retailer that currently uses 17 unskilled workers and 6 semiskilled workers at its warehouse to box and ship the products it sells online. Your company pays its unskilled workers the minimum wage, but pays its semiskilled workers $7.75 per hour. On January 17, 2007, you read an article in The Wall Street Journal reporting that the House of Representatives passed (by three to one margin) legislation that would increase the minimum wage from $5.15 to $7.25 per hour over two years. Discuss the implication of this legislation on your company's operations and in particular the implications for your optimal mix of inputs and long-run investment decisions.
What is the inflation rate in Home? In Foreign? What is the rate of change in the nominal exchange rate? Which currency is expected to appreciate? At what rate? Explain.
Fiscal policy refers to the use of government expenditures or tax policy to influence the aggregate demand for a specific purpose.
Explain in a nontechnical way why demand is elastic in the northwest segment of the demand curve and inelastic in the southeast segment.
Each of the following headlines describes an event that will have an effect on desired aggregate expenditure
How would each of the following affect the firm's marginal, average, and average variable cost curves?
Shelly's preferences for consumption and leisure can be expressed as. This utility function implies that shelly's marginal utility of leisure is C-200 and her marginal utility of consumption is L-80.
Discuss actions the government could take to induce firms in this industry to produce the socially efficient level of output.
Allan Sports sells snowmobiles in a Northern Suburb of the Twin Cities. For the third year in a row sales have been dismal.
The entire satisfaction consumer gets from consuming a good or service is________ utility, but the extra or additional satisfaction that a consumer gets from a good or service is ________ utility.
What is the main policy message of the AS-AD model, and how does it relate to the 1930s Keynesian revolution in economic theory? What should today's policy-makers assume about the natural rate of unemployment?
When McDonalds Corp reduced its price of the big mac by 75 percent-Using your knowledge of game theory, what do you think disrupted McDonald's plan?
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
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