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1. What effects do credit market imperfections have on the interest rates faced by lenders and borrowers?
2. What are the effects of a tax cut on consumption and savings in the presence of a credit market imperfection? Does Ricardian equivalence hold?
Each member of the family has the opportunity to migrate to the nearest city where there are two different types of jobs. Informal jobs are available to everybody and pay $200. Formal sector jobs are more difficult to get and p..
The tale of the throwaway DVD player, however, may yet return to haunt Chinese industry.
Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.
how much would you expect the equilibrium price paid by consumers to change? How much would you expect the equilibrium price received by producers to change?
Assume that each firm can buy only one license. What is the maximum amount you would be willing to pay for a license?
Suppose you are designed a new computer and want to make sure it is optimal for your needs. Random Access Memory can be added to your computer at a cost of $100 per gigabyte. For you the benefit of the first gigabyte of RAM is $800, and the benefi..
Suppose that every driver faces 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,000. Suppose there are two types of individuals: those with $60,000 in the bank and those with $5,000 in the ba..
$120 per month for cell phone service,other service $1 per minute . QD=150-50ρ, where ρ is the price of a minute a. what the cost of extra minute for each provider. b.how many minute uses with each provider.
In the late 2010, you purchased the common stock of a company that has reported significant earnings increases in nearly every quarter since your purchase. The price of the stock increased from $12 a share at the time of the purchase to a current ..
Calculate the total costs of pollution reduction associated with each policy. Compare the total costs and amount of pollution reduction to the efficient amount you found in part (a). Do any of these policies create a deadweight loss?
There are too many fixed gear bikes in Hipsterland and city leaders are looking for ways to reduce the quantity. They are considering policies which would reduce the number of fixed gear bikes. The demand and supply curves for fixed gear bikes in H..
Firm B has invested five years and $6 million in developing a new product. Even now, it is not clear whether the product can compete profitably in the market. Nonetheless, top management decides to commercialize it so that the development cost wil..
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