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One of the scarce resources that constrain our behavior is time. Each of us has only 24 hours in a day. How do you go about allocating your time in a given day among competing alternatives? How do you go about weighing the alternatives? Once you choose a most important use of time, why do you not spend all your time on it? Use the notion of opportunity cost in your answer.
Suppose you are a monopolist able to produce your chosen output at a constant average (and thus marginal) cost of ATC = MC = $5. You face a market demand curve given by Q = 53 - P or inverse demand given by P = 53 - Q, where Q is the output provid..
What are the links among educational systems, labor markets, and employment determination in many developing countries? Describe the process of educational job displacement.
Which force do Heckscher and Ohlin identify as the basic determinant of comparative advantage and trade?
Describe the relationship that currently exists between the U.S. and Cuba.
Suppose that the economy starts at equilibrium and the mpc = 0.8. What would be the effect of a $300 increase in taxes once all the rounds of the multiplier process are complete
Consider the market for health insurance. Suppose there are three people. Healthy Hal, Average Al, and Portly Pete. All three of these people will buy health insurance if it costs less than or equal to his actuarily fair insurance rate. Hal's true..
System of simultaneous regression equations - The OLS procedure is inconsistent for Equation
You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 20 - 2P and C(Q) = 104 - 14Q + Q^2. a. Find the inverse demand function for your firm's product. b. Determine the profit-maximizing pric..
A man makes an investment every 3 months at a nominal annual interest rate of 28%, compounded quarterly. His first investment was $100, followed by investments increasing $20 each 3 months.
Why would margarine producers prefer to have an excise tax imposed on both butter and margarine? Would such a tax be more or less efficient than a tax on margarine alone?
An investor with assets of 10,000 has an opportunity to invest 5000 in a venture that is equally likely to pay either 15,000 or nothing. The investors utility function can be described by the log utility function U(x)=ln(x), where x is his total w..
Figure 1 illustrates the labor market in a country that does not tax labor income. Suppose that the government introduces a Social Security tax on workers of $2 per hour. Use this information to work Problems.
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