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Suppose day-care centres charge working parents for each hour their children spend at the centres (no fixed costs of care). Suppose, too, that the federal government passes subsidy legislation so that the hourly cost per child now borne by the parents is cut in half. Would this policy cause an increase in the labour supply of parents with small children?
The U.S. was on a “gold standard” from 1879 to 1933. Which of the following was a a major disadvantage of being on the gold standard from an economic point of view? the fixed exchange rate made international trade and investment easier. the price of ..
Alternative X has a first cost of $5 million and an annual maintenance cost of $200,000. Alternative Y has a first cost of $7 million, a maintenance cost of $40,000 and periodic expenditures of $100,000 every five years. If both alternatives have inf..
We are interested in checking if larger cities have higher rates of influenza than we would expect just from them being larger (Does a 1% increase in population result in a more than 1% increase in Influenza). Compute the t-statistic and determine if..
Assuming that the current production rates are maintained at the three assembly plants, which alternative should management select?
If the Federal Reserve intervenes in the foreign-exchange markets by selling foreign currencies
Now suppose one big firm comes and buys out all of the firms in the cartel. This monopoly somehow miraculously is able to perfectly price discriminate. How much will this firm produce? What will be the deadweight loss created by this monopoly?
Zigs Industries had the following operating results for 2011: sales = $29,820; cost of goods sold = $19,810; depreciation expense = $5,300; interest expense = $2,640; dividends paid = $1,500. At the beginning of the year, net fixed assets were $17,23..
In the area of agricultural chemicals, the Environmental Protection Agency requires detailed labeling on cans of pesticides and herbicides. Generally speaking, the industry not only doesn't oppose these labeling requirements, but even supports govern..
An economy has a consumption function of C = 400 + .75(DI) The following values are fixed : G , T = 1000 NX = 50 I = 750 Suppose that the CPI ( i.e., the "Price Level") is currently equal to 115. What is the equilibrium real GDP (on the demand side)?
The economy is in a crisis! How are we going to fix it? should we cut taxes or increase government spending? lets find out. Suppose the economy can be modeled as follows. C=100+.9Yd AE=C+I+G I=500 G=500 T=500. Graph the economy and solve for equilibr..
Suppose Jennifer has $42,000 in currency which she deposits in her bank. If the reserve ratio is 50%, this will lead to a maximum increase of ________ in M1 throughout all banks.
If the price elasticity of demand is –0.6 and the income elasticity is +0.25, then what is the effect of a simultaneous 10% increase in price and a 20% increase in income on total health expenditures (again just the direction, do not need to calculat..
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