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Question
How do you think income elasticity affects a normal good versus an inferior good? Provide a real-world example.
What have been the advantages and disadvantages to Venezuela of having petroleum reserves?
Consider a community of 3 households. The marginal benefit/inverse demand for police protection services (denoted as S) for each household is given below:
Show that a risk-neutral person would prefer a 0.8 chance of winning 4,000 to a sure payment of 3,000, and that the same person would prefer a 0.2 chance of winning 4,000 to a 0.25 chance of winning 3,000.
A negative externality is? Which of the following assertions about pollution is generally agreed with by economists? Pollution problems generally represent. Legal constraints will always reduce the size of the economic pie.
How is the number of people in line at a coffee shop or how many blue marbles are in a jar considered discrete random variables?
Using the information you have learned so far in this class, state what you think will cause market fluctuations over the next few years as the economy struggles to recover. What areas of the economy should be closely watched as indicators of future ..
Without any other information, what would be the average salary offered by firms? (In other words, what is the average salary in the "pooled equilibrium?")
Which of the following events would strengthen the arguments for using an active government stabilization policy, and which would weaken the arguments for active government policy? Explain why in each case. Structural changes make wages adjust more q..
The quantity demanded of the resource in each year is given by the equation Qt = 10 - Pt . The marginal cost of extraction is zero.
A policy that results in a Pareto improvement will always satisfy the Kaldor-Hicks Criterion; however, it may decrease social welfare.
Assume that a large open economy with a floating exchange rate is described in the short run by the equations: Calculate short-run equilibrium values of Y, r, C, I, CF, NX, e, private saving, public saving, and foreign saving.
Consider the Solow model economy that begin with a capital stock equals to 300 billion and suppose its steady state level of capital is 500 billion. To its pleasant surprise, the economy receives a generous gift of foreign aid in the form of 100 bill..
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