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John buys shoes for $1 a pair and socks for $1 a pair. His annual income is $20.
a. Draw John’s budget line; label it?
b. Now suppose the government institutes two new programs: first, it taxes shoes, so that shoes now cost John $2 a pair. Second, it gives John an annual cash gift of $10. Draw his new budget line. Label it?
c. Suppose that with the new programs in place, John chooses to buy 10 pairs of socks and 10 pairs of shoes. Has the pair of government programs made him better off, worse off, or neither?
Find the equilibrium price and quantity algebraically. If tourists decide they do not really like T-shirts that much, which of the following might be the new demand curve.
Use these data to calculate the following:a.Private saving b.Public saving c.Government purchases
This is the conclusion reached by the reporter who covered the vigorous price competition between Borders also Barnes & Noble in Fort Worth region during the 2006 holiday shopping season.
An economist estimated that the cost function of a single-product firm is: The fixed cost of producing 10 units of output. The total cost of producing 10 units of output. The average total cost of producing 10 units of output.
Why would you sell these items through retail stores, or would you try direct marketing.
Describe the magnitude of crowding-out that results from the above fiscal expansion .Show the transition dynamics that results.
q1. suppose that i make 15 per hour and you make 20 per hour and we both like to eat hamburgers that cost 5 each.
What is cost-minimizing firm's expansion path will have vertical or horizontal segements.
Large-demonic country time deposits $ 304 billion Currency also coin held by nonbanking public 438 billion Checkable deposits 509 billion Small-demonic country time deposits
Do vending machines conserve on any possessions other than labor. Does your answer offer any additional insight into the widespread utilize of vending machines in Japan.
Presently the bond is priced to yield a return of 5% per year. Illustrate what is the bond's current market price.
Consider the following cash flow. Determine the annual worth if the minimum attractive rate of return is 9% per year.
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