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Suppose a city government decides that it wants to increase revenue by raising the price of parking tickets.
What government officials increase the price of parking ticket from $40 to $50; they are surprised that their revenue actually falls. What happened?
Illustrate (Draw the graph) the following events with AS and AD shifts. Start with the initial graph then add the change to either the AS or AD.
Which of the followings tends to occur during recessions Cyclical unemployment tends to fall The stock markets tends to surge (experience a rapid rise in prices) Interest rates tend to fall Gross Domestic Product rises Consumer ..
In a simple model with no government or foreign sector, the amount of involuntary inventory accumulation at equilibrium is
What are the firm's fixed costs? What is the firm's marginal cost? Now suppose other firms in the market sell the product at a price of $10.
Discuss how absolute advantage and comparative advantage differ? Kyle can read 20 pages of the economics in an hour. He can also read 50 pages of history in an hour. He spends 5 hours pre day studying. Draw Kyle's production possibilities fron..
Explain the concept of externality. What does it have to do with the efficient allocation of resources?
Give at least three explanations of why economic reasoning would argue that this is to be expected.
If the government starts welfare policy which pays B to all non workers and 0 to all workers, at what value of B will Mike opt out of the labor force and go on welfare?
Maggie's utility function is and her income is $5000. Then her MRS at generic bundle (x1, x2) is 50-0.25x1. Commodity 2 is a composite good, and hence its price is unity.
What is the amount of the difference between the maximum premium and AFP, and what is this called?
Suppose that in the market for comic book illustrators the substitution effect dominates the income effect While visiting Comic Con.
Compute the producer surplus from parts a and b. Are producers better or worse off as a result of international trade? Discuss why.
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