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There are three questions, which must be addressed by any economy: What should be produced, How should they be produced, and to whom do they go? These are outlined in the instructor's comments. For each of the questions, I would like your criticism, or praise, of how each is answered in the United States (or any country in which you currently reside).
Your company has a monopoly on a wristwatch digital cameras. Market research has shown that demand for these cameras is P(Q, z) = z(48−2Q). Suppose that, for a given quality, consumers were more price elastic when it came to cameras. Given the above,..
Consider the horizontal quality model on the unit interval from 0 to 1. There are N consumers located uniformly along the interval. If the firms sell to the whole market, derive the function governing demand to each firm as a function of the two pric..
Differentiate between the treatment of S corporation distributions from corporations having no earnings and profits, and corporations having accumulated earnings and profits. Suggest the most significant reason for the difference in the treatment ..
q. assume labor supply is given by w102ls where w denotes the wage. labor demand is given by w 100-ld.a compute
A. Describe the phases of the business cycle. B. Explain what is happening to GDP and unemployment at each phase of the cycle.
The stability of fiscal policy. (Blinder and Solow, 1973.) By definition, the budget deficit equals the rate of change of the amount of debt outstanding: δ(t)=?(t). Define d(t) to be the ratio of debt to output: d(t)=D(t)Y(t). Assume that Y(t) grows ..
Elucidate one opportunity for Big Drive Auto that requires a business management decision.
Explain how is the activity reflected on the balance on current ccount different from the activity reflected on the capital.
Suppose that a consumer can purchase apples for $1, and bananas for $0.50. The consumer is willing to spend $10/week on fruit. Draw the consumer’s budget constraint, showing the different combinations of apples and bananas that can be purchased for $..
Find the critical elasticity of demand for an SSNIP equal to 5%. How does this compare to the prevailing (Cournot) elasticity of demand?
Economists have argued that rent control is "the best way to destroy a city, other than bombing." Why would economists say this. Illustrate what problems might it face in the future.
The State of Michigan has a population of 9,883,000. In November, 2015, there were4,763,700 people who are in the labor force, 243,721 unemployed. (a) What is the labor force participation rate in Michigan in November, 2015?
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