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Suppose there are two types of Scottish beer, Skullsplitter and Dragonhead Stout. Draw indifference curves for the following consumers(put Skullsplitter on the x-axis and Dragonhead Stout on the y-axis).
Tam wants to drink beer which as much alcohol as possible. Skullsplitter has 5% and Dragonhead Stout has 10%. What do Tam's indifference curves look like?
Explain what the tax multiplier is and why it is less than the expenditure multiplier. Explain, in your own words, how an increase in investment spending generates a multiplied effect on GDP.
You are the manager for Herman Miller, a major manufacturer of office furniture. You recently hired an economist to work with the engineering and operation experts to estimate the production function for a particular line of office chairs. What is th..
Assume that the job separation rate s is 0.01 (1%) per month and that the job finding rate f is 0.2 (20%) per month. Assume that the labor force today (period t = 0) is 100 million. What is the steady state unemployment rate for this economy? In the ..
Assume the economy has a Cobb-Douglas production and is in a steady state. Calculate the technology growth rate for this economy. What is a the marginal product of capital for this economy
Explain advantages and disadvantages of investing in real estate. Do tax laws seem to favor certain types of investments?
The price elasticity of demand for urban transit fares has been estimated to lie between -0.1 and -0.6. Based on these results, give an economic argument for raising transit fares. What political arguments might local governments and transit authorit..
What are some of the reasons why the government will need to focus on spending levels to stimulate the economy?
Why doesn’t the Fed simply keep increasing the growth rate of the money supply at faster and faster rates to drive the unemployment rate lower and lower? Wouldn’t the gains in terms of faster output growth far exceed the losses from inflation?
A farm must decide whether or not to purchase a new tractor. The tractor will reduce costs by $2,000 in the first year, $2,500 in the second year, and $3,000 in the third year, and $3,000 in the fourth year. what would happen to the present value of ..
A candidate in the group is proposing a national sales tax to replace our personal income tax. Analyze this tax proposal to help your candidate understand its merits and demerits, so that she knows how to attack him.
If the fed begins shifting the ad curve rightward at a faster rate than in the past, the short-run effect is a
Your weekly costs to producing q units are given by the following equation: C(q)=7+10q+3.5q2 +q3. With this technology, AC is minimized at approximately q = 1.11. What is the long-run equilibrium price of in this market, given that there are no barri..
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