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Explain how crowding out works, using the one-period model as an example. Please use the graph and words to explain.
Output is y=(x1^1/2)*x2. The total cost equation is c=3x1+2x2 where w1=3 and w2=2. At the price of the output is p=6 what is the profit maximizing level of x2?
What is the effect of years of schooling on economic development? Once we control for the quality of education, what happens to the effect of years of schooling on economic development?
Assume in the retail-trade industry, unionized workers earn 19.0% more than non-unionized workers do. Briefly explain how the “product market” effect may operate in this industry. If the product market effect were large, would that suggest that the 1..
Please draw the Keynesian Cross assuming the following information. Be sure to specify at what point consumption and disposable income are equal. Marginal Propensity to Consume = .67 Autonomous Consumption = $850. Assume that your disposable income i..
Consider a world with two countries, A and B, in which consumers are obsessed with the consumption of YokiPooki, which is considered to be the latest and greatest in VR entertainment. The two counties are identical: each has an aggregate demand for Y..
do you think the price of crude oil has produced an upward or downward supply shock, or neither? How can you tell? Looking at historical data, when did the most recent oil-related supply shocks occur?
Financial Crisis: Suppose that banks are less able to raise funds and so lend less. Consequently, because people and households are less able to borrow, they spend less at any given price level than they would otherwise. Suppose the economy reaches l..
Barney’s snow removal service is a profit-maximizing, competitive firm. Barney clears driveways for $10 each. His total cost each day is $250, and half of his total costs are fixed. If Barney clears 20 driveways a day, should Barney operate or shut d..
q. 1. the article states starting about 1950 the relative returns for schooling rose and they skyrocketed after 1980.
Warren Buffett’s company went public in 1965. The public offering price walls $18 per share. The stock was traded at $92,400 on April 10, 2009, and the market value of the firm was $97.8 billion. What is the firm’s average annual compound growth rate..
What is growth and why is it important? What role does innovation play in growth? Where does economic growth ultimately come from? Why is this? Comment on its impact on real income. How does savings affect growth? Use the Solow model diagram to show..
Illustrate what is true about the prices they are able to charge and their revenue if they try to practice second degree price discrimination as the Bills did.
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