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1) How are scarcity, choice, and opportunity cost related?
2) What are the effects of an increase in the minimum wage in the U.S. economy? Who would be most affected?
3) Why is elasticity of demand greater for goods that are a large share of a consumer's budget?
4) What is the difference between accounting profits and economic profits? Which of the two concepts is more appropriate for explaining decisions made by entrepreneurs? Explain.
5) Differentiate between the short run and the long run? What is the appropriate time dimension of the long run?
Suppose that Scott and Bob live on the same street. In the winter, both of them like the snow on their street to be plowed. Bob’s demand is given by Q = 40 – P, and Scott’s demand is given by Q = 30 – 2P. Suppose that the marginal cost of plowing the..
Assume there are 1000 homes in a flood zone in an area in which sea levels are rising. An additional 1000 homes are above the flood zone and at less risk. A levee could be built to prevent the rise in sea level from affecting the homes. It is worth $..
Explain the Zero Lower Bound (ZLB) problem of monetary policy and its importance and plot the federal funds rate upper and lower limits for all available periods. Was the economy in the US limited by this issue during the financial crisis?
q. 1. what change in the federal funds rate would you recommend?2. how would your recommended change get
Andrew appoints Matthew to be his agent for a period of 2 years. After 6 months, Andrew meets with an accident after which he permanently losses his capacity to understand things going on around him. This terminates the contract automatically. But Ma..
A public private initiative in Texas will significantly expand the wind generated energy throughout the state. The cash flow for one phase of the project involving Centrals point Energy, a transmission utility company, is shown. How many number of RO..
In reaction to the growing Western influence in China, a secret society known as the Boxers waged a violent uprising. How do reactionary movements, such as the Boxer Rebellion, begin? Are they ever justified in resorting to violence to achieve their ..
At any point to the right of the IS curve, total leakages must exceed total injections. If velocity is rising, then the demand for money must be falling. The transactions motive for holding/demanding money is related primarily to the fact that money ..
Each employer faces competitive weekly wages of $2,000 for blacks and $2,700 for whites. Suppose employers undervalue the efforts/skills of blacks in the production process. In particular, every firm is associated with a discrimination coefficient d,..
Describe the founding of the company. Did any mergers or acquisitions affect the company? Were there any regulatory or other changes that affected the company's development?
Compare and contrast Keynes's theory of the speculative demand for money with Tobin's portfolio selection theory utilizing the expected utility hypothesis.
The GI Bill provided educational opportunities to many young men returning from military service. Using a production possibilities curve, demonstrate how the GI Bill affected economic growth and explain your answer. Why is China still poor in per c..
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