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Develop the costs and benefits to compare owning a new car with one that is 2 years old. Place a monetary value on each advantage or disadvantage. Develop a choice table for interest rates between 0% and 25%
Suppose that hospitals use nurses (N), doctors (D) to perform surgeries (Q). The production function for surgeries is: Q = F(N;D), where F(N;D) is some function that increases in N and D. Assume that the marginal products of N and D are diminishing
The US government decides to introduce a tax on a given market to increase government revenues that can be used to finance the provision of public goods. What are the consequences of introducing a tax on a labour market and on a product market? Why d..
What is the Coase Theorem? Explain the relevance of each of the following conditions for the applicability of the theorem? Describe the difference between the logic of market processes and the logic of democratic political processes? How does this re..
Would the effect on aggregate demand be larger if the Bank of Canada took no action in response, or if the Bank were committed to maintaining a fixed interest rate.
Hotelling’s rule. Using the (graphical) two-period model for a nonrenewable resource, analyze the effects of the following on equilibrium prices and quantities in the market for that resource: an increase in the interest rate, an increase in second-p..
Since 1965 the average amount of leisure time for men has increased by 8 hours per week. that's like an extra 9 weeks of vacation per year. For women the average increase in leisure has been 6 hours per week. What does this tell us about the income e..
Illustrate what is the proper role of unions. Why are they declining in membership and influence in the economy.
The marginal benefit of reducing pollution
Marge opens an oxygen bar in a building she owns. She utilized to rent the building to her brother in law.
Suppose you have $500 in savings when the price level index is at 100. (a) If inflation pushes the price level up by 10 percent, what will be the real value of your savings?
Visit the National Economic Accounts section of the Bureau of Economic Analysis website and open up the latest News Release on Gross Domestic Product.
What is the invisible hand principle? Does it indicate that self-interested behavior within markets will result in actions that are beneficial to others? What conditions are necessary for the invisible hand to work well? Why are those conditions impo..
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