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Problem A. Define the Law of Diminishing Marginal Utility
Problem B. How are Shortages allocated? Briefly explain each point.
Problem C. How are Surpluses dealt with?
Problem D. Distinguish between a normal good and an inferior good.
A political commentator argues: "Congress and the President are more likely to enact an expansionary fiscal policy than a contractionary fiscal policy because expansionary policies are popular and contractionary policies are unpopular". Explain..
What is a public good? Why does the government tend to produce public goods and how are opportunity cost and scarcity related?
What are the optimal renting rate and the renting quantity in each period?) First period price and quantity. First period price and quantity.
Who will be willing to pay the higher price, all else constant? What happens to the quantity of drivers available during surge pricing, all else constant? What happens to the quantity demanded during surge pricing all else constant?
Draw a supply and demand diagram for the Corn market showing this equilibrium.
From the e-Activity, examine the federal budget over the past 25 years. From the data, determine which of the two (2) forces appears stronger: falling revenue or spending growth. Speculate on the main reasons for the trend. Provide a rationale..
Use PWs to calculate the benefit/cost ratio at i = 5% for a highway project. The first cost is $150K, and O&M costs are $5K per year.
In the argument for why perfect competition is allocatively efficient, the price that people are willing to pay represents the gains to society.
Choose any macroeconomic model that you have studied in this unit and discuss how that model is an improvement on the classical explanation of macroeconomics.
What are the contributions of these transactions to GDP in the years 2013 and 2014?
Describe the rise or fall in the equilibrium price and quantity and describe the factors that may have caused the supply or demand curve to shift to the left or right.
Describe the data you have assembled and what the key general descriptive statistics are for the data (highlight what, in your opinion, are the most important
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