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You have $33,556.25 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $220,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal?
Which of the following would eliminate scarcity as an economic problem? Moderation of people’s competitive instincts. Discovery of large new energy reserves. Resumption of steady productivity growth. None of the above because scarcity cannot be elim..
a) For a firm, how does the concept of producer surplus differ from that of profit if it has no fixed costs?
Why do price gouging laws often fail to work?
Nobel laureate Paul Samuelson said that comparative advantage is one of the few ideas in economics that is both "true and not obvious." Since it's not obvious, we should practice with it a bit. In each of the cases below, who has the absolute advanta..
Explain what typically happens to bond interest rates in US recessions. Use the demand and supply graph but clearly label any curve shifts and explain the reasons behind those shifts. How does the Segmented Markets theory explain the second fact abou..
All of the following are assumptions of the theory of comparative advantage, except
We’ve seen that monopolistically competitive firms will try to differentiate their products in order to eliminate substitutes. Are there comparable measures that can be taken in labor markets to decrease the number of “substitutes” for some types of ..
What happens to equilibrium price and the equilibrium quantity of each good described in the situations described below? Illustrate your answers. Sunnyvale is named the most liveable city in the United States. At the same time, the wage rates of home..
How do you determine if a utility function is homothetic? I understand that definitions say that if the MRS depends only on the ratio of the two goods, then the utility function is homothetic. Yet I have trouble understanding how to actually apply..
When confronted with a natural monopoly that restricts output and charges monopoly prices, the two methods that governments have for promoting better outcomes are:
During the industrial revolution:
Suppose that government decides to charge cola consumers a tax. What is incidence of tax that falls on producers.
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