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1. What is the difference between a firm's accounting and economic costs? How do these costs relate to a firm's accounting and economic profits?
2. Define opportunity cost. How does a firm's opportunity cost relate to its economic cost?
3. What is the sunk cost fallacy?
Pete and Lisa are entering into a bargaining situation in which Pete stands to gain up to $5,000 and Lisa stands to gain up to $1,000, provided they reach agreement. Who is likely to be the better bargainer?
How does the presence of a large number of previous movers to a country affect the projected costs and benefits of subsequent movers?
If you could create a popular culture artifact and provide universal access to it, describe what message you might embed in this artifact or whether you would avoid any specific message. Explain your response.
price information for a typical market basket of goods purchased by consumers and assume that 2000 is the base year:1.Calculate the price index for 2000. 2.Calculate the price index for 2001. 3.Calculate the price index for 2002. 4.Calculate the pric..
Which country has a comparative advantage in the production of watches? in the production of automobiles?
It is estimated that US tobacco settlement betwwen major tobacco companies and 46 states caused the price of cigs to jump by 45 cents per pack (21 per cent) and overall per capita cig consumption to fall by 8.3 per cent. What is the elasticity of ..
Assume that the LM curve for a small open economy with a fixed exchange rate is given by Y = 200r - 200 + 2(M/P). This IS curve is given by Y = 400 + 3G - 2T + 3NX - 200r. The function for the net exports is NX = 200 - 100e, where e is the..
in the derivation of the solow growth model we assumed that government spending and taxes less transfers were both
Caroline received a $1 million payment from a lottery ticket. She decided to use the money to purchase a cupcake business. If Caroline had invested the $1 million in a money market account, she would have made $30,000 in interest each year.
Of the four sources of funding listed above, which sources are likely to increase/decrease Again, be sure to distinguish between a change in dollar terms versus a change in its contribution to overall funding/revenue.
Suppose that an investor has a choice between buying this security or purchasing a different security that also costs $3,000 today but pays off $3,300 with certainty in one year. How is an investor's choice of which security to purchase related to..
Find the natural rate of uemployment b. Graph the short run Phillips curve if the expected rate of inflation is 3 percent or 0.03 c. What is the sacrifice ratio in this economy d. If the central bank has a loss function of L(pi) = (pi)..
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