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Q1. Suppose the parliament passes legislation making it more difficult for firms to fire workers (e.g. law requiring severance pay to fired workers) if this legislation reduces the rate of job separation without affecting the rate of job finding, how would the natural rate of unemployment change? Do you think that it is plausible that legislation would not affect the rate of job finding? Why or why not?
Q2. The supply is Nerf balls Qs = -100,000 + 8,000p and the demand is Qd = 140,000 + 2Y - 7000p, where Q = Nerf balls per month, p is the price (in cents) of one Nerf ball, and Y is income in dollars. Initially, Y is $30,000. The government imposes a tax of 10 cents per Nerf ball. What percent of the tax is borne by buyers? If income rises to $40,000, how much will tax revenue rise?
How would you use these cost and revenue estimates to determine whether a sales force increase or possibly a decrease is warranted.
Assuming that all buyers received the credit, estimate the own cost elasticity of demand as well as well as own cost elasticity of supply.
Discuss in detail, the impact that currency movements are having on the economic data that you are collecting in Part A.
For each level of output except zero output, calculate the average variable cost, average total cost and average fixed cost.
What effect would a 30 percent reduction in the number of new homes completed have on Mapco's sale.
What is the deadweight loss if buyers, instead of vendors, are required to pay the tax of $4 for each unit of the good sold.
In your opinion should our government impose price floors and/or price ceilings in our economy.
The payoff matrix of economic profits above displays the possible outcomes for Bob and Jane who are involved in game of whether or not to advertise.
Wilpen plans to charge a wholesale price of $1.65 per can. As the average value of tennis racket is $110, and average household income of consumer is $24,600.
Businesses have to make many financial decisions that have a direct impact on operations and the ability to successfully compete in the marketplace.
What is the relationship between the marginal rate of substitution between leisure as well as labor as well as the marginal product of labor in the RC model.
Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage.
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