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Insurance agents receive a commission on the policies they sell. Many states regulate the rates that can be charged for insurance. Would higher or lower rates increase the incomes of agents? Explain, distinguishing between the short-run and the long-run.
The price in a market is dominated by two firms is affected by the quantities supplied by both firms, Q1 and Q2: P = 100 - (Q1 + Q2). The marginal cost for the two firms is identical and constant and equal to 25. Derive the equations for total revenu..
You hold an auction among three bidders. You estimate that each bidder has a value of either $16 or $20 for the item, and you attach probabilities to each value of 50%. What is the expected price? If two of the three bidders collude, what is the pric..
Consider an economy in which the amount of investment is equal to the amount of savings (i.e., the economy is closed to international flows of capital).
Suppose the real interest rate is 3%, the real growth rate is 2%, the money multiplier is 4, banking innovations are decreasing the demand for money by 1% per year and the money supply is growing at 10% per year. What should be the price of a T-bill ..
To prevent inflation,the Fed should follow Teddy Roosevelt's advice: 'Speak softly and carry a big stick.'" What would the Fed's "big stick" be? What is the statement trying to say?
"The observation of rising interest rates should always be interpreted as an indicator of economic decline while falling interest rates should always be interpreted as a an indicator of economic expansion." In preparing your comments bear in mind tha..
St Atanagio is a remote island in the Atlantic. The inhabitants grow corn and breed poultry. The accompanying table shows the maximum annual output combinations of corn and poultry that can be produced. Obviously, given their limited resources and..
q.your lecturer used to work at a nationwide chain of retail swimming pool stores which pays its sales force a bonus
It is likely that a pro trade production growth effect will lead to an expansion of trade since the presence of inferior goods is relatively rare. Explain.
Suppose that the inverse market demand for pumpkins is given by P=$10-0.05Q. Pumpkins can be grown by anybody at a constant marginal cost of $1. If there are lots of pumpkin growers in town so that the pumpkin industry is competitive, how many pumpki..
Consider an economy where the production function is Y = K0.5 (LE) 0.5 The depreciation rate is δ = 0.04, the savings rate is s = 0.2, the population growth rate is n = 0.03 and technology growth rate is g = 0.03. What is the ’per effective worker’ p..
q.the small city of le locle has been served by the same local newspaper for the last 30 years called the le locle
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