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We are in the midst of a slow growing economy in the aftermath of a severe recession. During the economic downturn many businesses laid off workers very quickly once they forecast their sales were dropping. What are the economic reasons behind cutting employees very quickly in a slowing economy? Why are companies slow to rehire workers even though the stock market is quite high? In other words, what are some of the impediments to hiring and how are businesses getting the work done with fewer employees?
Consider Bertrand competition with homogeneous products. Two firms, 1 and 2, produce an identical product and compete by choosing price. Consumers buy from the firm with the lower price. If the prices are identical, however, assume all consumers buy ..
As noted in the chapter, separating the production of electricity from its delivery has led to considerable deregulation of producers. (See page 599 in the textbook.) Briefly explain which of these two aspects of the sale of electricity remains susce..
A consumer has a utility function, donuts (A) and peaches (B) given by u(A,B) = squareroot AB suppose donuts and peaches are priced .25 cents a unit, consumer income I is the unknown. Can you say anything about demand for donuts and peaches?
What, if anything, did you find surprising, particularly challenging, or interesting? From what you know about this course so far, what connections can you make to previous learing experiences, and how do you think this course will help you as you mo..
Calculate real GDP in each year, and the percentage increase in real GDP from year 1 to year 2 using year 1 as the base year. Next, do the same calculations using the chain-weighting method.
q.assume that the equation for demand for bread at a small bakery is qd 60 - 10pb 3y where qd is the quantity of
Grocery stores and gas stations in a large city would appear to be examples of competitive markets. There are numerous, relatively small sellers, each seller is a price taker and the products are quite similar. Is is possible these markets are perfec..
Tipping theory, though not new, is in the news lately, in reference to our "recession" (some say "depression"), and how we can get ourselves out of it, whatever we call it. What is tipping theory? If you've never heard of it, you may research the top..
A basic difference between microeconomics and macroeconomics is that microeconomic examines the choices made by individual participants in an economy, whereas macroeconomics considers the economy's overall performance.Why?
What could the FED ( Federal reserve system) do in 2002-2003 in order to bring the economy back to full-employment ? What did the FED actually do ? Explain in detail
If the American auto companies make a breakthroufh in automobile technology and are able to produce a car that gets 70 miles to the gallon, what will happen to the value of the dollar? Use the demand-supply model of the dollar to explain.
Please explain the incentive problem associated with fee-for-service insurance reimbursement. How does switching to capitation reimbursement solve this problem? Can you make an argument that capitation creates a different incentive problem?
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