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What is inferential statistics and how does it differ from descriptive statistics?
Calculate the amounts of outputs, Q1 and Q2 that the monopolist should produce and the prices that it should charge if it wants to maximize total profit. Calculate the amount of total profit.
A firm is currently producing 40 units of output. At this level of output produced: Is this firm making profits or losses? How much? Are they maximum profits? Why?
Suppose that there is asymmetric information in the market for used cars. Sellers know the quality of the car that they are? selling, but buyers do not.
Illustrate what is the value of the equilibrium exchange rate. Assume the demand for dollars increases by 300 billion at each exchange rate.
Shocks to an economy, such as wars, famines, or the unification of two economies, often generate large flows of workers across borders. What are the short run and long run effects on an economy of a one-time permanent increase in the stock of labor? ..
Illustrate the effect of the price change. Be sure to fully label the graph and illustrate the gaines and losses in total revenue associated with the change. What happens to total revenue? Did you make demand elastic or inelastic? Why?
Suppose that you close down your coffee shop and sell your coffee maker for $500. If you originally bought the coffee maker for $4,000 and it lost $1,000 because of depreciation (i.e., age and use), the sunk cost of the coffee maker is:
Suppose U.S government officials are concerned about importing beef that might be contaminated with hoof and mouth disease, and they react by restricting beef from Argentina. Explain the impact of this action on price, quanitty, consumer surplus and ..
Sales have boomed at the takeout café you opened next to a train station and bus stop. You've sold coffee and breakfast pastries from 5:30-10:00 AM, promoting your products to commuters through street signs and posters on bus shelters. You plan to bu..
Define Monetary Policy and its purpose. What factors led to the mortgage default crisis and ultimately the Housing Crisis? How did mortgage defaults affect banks involved in mortgage lending and mortgage investing?
The economy is hit with a positive LRAS shock and you, in your role as a central banker, respond with an active policy response to stabilize inflation. (a) Draw an AS/AD diagram illustrating the changes in output and inflation. (b) Describe briefly h..
The country of G is a small, open economy. Suddenly, a change in world fashions makes the exports of G popular. Explain what happens to public and private savings, investment, net exports, the interest rate, and the exchange rate.
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