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In developed countries like Canada or the United States, why is globalization likely to increase demand for skilled workers and reduce demand for unskilled workers? How might this lead to increased income inequality?
Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $10 billion while raising only $8 billion worth of taxes. What will be the government's deficit? If the government finances the deficit by issuing bonds, what amount..
Let the exchange rate be defined as the number of dollars per Japanese yen. Assume there is an increase in U.S. interest rates relative to that of Japan. Would this event cause the demand for the dollar to increase or decrease relative to the demand ..
If you were the risk manager charged with developing a new line of auto insurance, which market would you pursue and which ones would you not pursue?
The vertical intercept for the demand curve is at 500 and the vertical intercept for the supply curve is at 100. Initially, there is no tax on the market, and the airplane sells a quantity of 40 units at a price of $420. But at some point, because bo..
Suppose an industry consists of 2 firms that compete by choosing quantities simultaneously in each period t = 1, 2, 3,...... (in other words, the two firms play infinitely repeated Cournot game). Inverse demand in the industry is given by the linear ..
Determine the point price and income elasticities for household furniture
For each of the following transactions, how much does US GDP increase? And how much, if at all, do consumption, investment, government purchases and net exports change?
Under what supply and demand conditions would an excise tax create a large incidence of the tax on suppliers and a small incidence of the tax on consumers? Explain how this works.
Builtrite had sales of $4,000,000 in 2011. Cost of goods sold were calculated at 70% of sales. Builtrite’s operating expenses were $700,000 which included depreciation expense. Bonds with a total par value of $2,000,000 were outstanding and had a 4% ..
Suppose that income falls to $800. What is the new equation for the demand for TV stands as a function of price P?
What can government do to encourage the development of new technology? What are the two key characteristics of public goods? Name two public goods, and explain why they are public goods. How can the free rider problem be overcome?
If you were starting a soap business (laundry soap), what strategy would you use to compete with Procter & Gamble and Clorox? How would you reach your target market? How and where would you advertise? We talk about the power of word of mouth-how do y..
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