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On January 1, 2016 at 9:00am, you paid $100 for a bond that will pay $105 to whomever owns the bond on December 31, 2016. Do you want economy-wide interest rates to increase or decrease on January 1, 2016 at 9:05am? Briefly explain.
If a market is perfectly competitive and is in long-run equilibrium, which of the following conditions does not hold?
Consider a monopsonist in the labor market. Let the labor supply be given by L = 4w, where L is the employment level, and w is the wage rate. Suppose that the monopsonist has the production function F(L) = √ L. What is the wage rate and employment l..
Explain how specifically does this information affect your desire to sign a two-year contract with Toy Yachts R Us.
Proponents of a basic income (or negative income tax) argue that it is a superior method of addressing income inequality than the minimum wage. First, briefly explain in what sense the basic income is less disruptive to labor markets than the minimum..
Identify the peculiarities of tourism as a product compared with everyday goods and services which consumers may demand. Why is prepurchase consumer decision making particularly important in travel and tourism demand.
Explain what Alice must prove in order to maintain a claim for sexual harassment and constructive discharge.
Consider the market for labor is segmented into the market for low skilled labor and the market for high skilled labor. If the low skilled labor market is given by the following function: labor demand: w = 35 – 0.005L; and labor supply is 4000. What ..
Jane has 3 liters of drinks and 9 sandwiches. Bob on the other hand has 8 liters of drinks and 4 sandwiches. With these endowments, Jane’s MRS DS is 4 and Bob’s MRS DS is equal to 2. Draw an Edgeworth box diagram to show whether this allocation of re..
In a recent speech, the governor of your state announced: “One of the biggest causes of juvenile delinquency in this state is the high rate of unemployment among 16 to 19 year olds. The low wages offered by employers in the state have given fewer tee..
What WAN technology would you recommend for this ski resort to connect their two locations to exchange data? Be sure to defend your recommendation.
Why, according to Sargent, were Reagan’s fiscal and monetary policy regimes “incredible?” Explain carefully. What goal did the Reagan administration have by setting the monetary policy it did? What unintended consequence did this have in the economy?..
What are the four market types? Give an illustration of each. From a social standpoint, what is the problem with monopoly? Discuss this using an example for illustration.
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