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Q1. Initially, Michael has 10 candy bars also 5 cookies; also Tony has 5 candy bars also 10 cookies. After trading, Michael has 12 candy bars also 3 cookies. In an Edge worth Box, label the initial allocation A also the new allocation B. Include indifference curves that is consistent with this trade being optimal for both Michael also Tony.
Q2. You have chosen to take a trip during Spring Break. If you had not g1, you would either have worked at a temporary job or studied for exams. The opportunity cost of your trip is
Due to the global economic slowdown, we were benefiting from relatively low oil prices.
She says the tax will generate $100,000 tax revenues per month. What assumption is she making.
Explicate why the government expenditure multiplier is different from the tax multiplier.
Assume that this cost is set by an upstream wholesaler with monopoly pricing power.
For each values for the MPC, determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease.
Explain how will the increase in unemployment benefits affect output and the price level in the short run and in the medium run.
Subsequently the customer paid the balance on 22 October 2012. To customer the Credit terms offered.
Elucidate what type of returns to scale does this technology represent.
What is the deadweight loss in both markets if the price of a crate of fresh oranges is raised.
Using the concept of price elasticity explain why the price of basic commodities has to be regulated in price rise.
Graph all three curves. What is the relationship between the marginal-cost curve and the average total cost curve
These options also sell for $3 each. Strategy C is to establish a zero-cost collar by writing the January calls and buying the January puts.
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