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The utility function U = (X^3)Y. When X (on the horizontal axis) =16 units and Y (on the vertical axis) = 48 units, the marginal rate of substitution of the indifference curve passing through this point is?
Net domestic product (NDP) typically only accounts for depreciation of physical capital. However, there are three broad types of capital: physical, human, and natural. Should depreciation of the other two types of capital also be counted? Explain, pr..
In the five years ending 2011, Switzerland enjoyed a fiscal surplus that averaged 1.3% of GDP, a trade surplus that averaged 2.6% of GDP, and a government debt to GDP ratio that averaged 40%. Use the appropriate graphs for a small open economy to ill..
Ear Us production function is Q=KL. The company over the years uses input rates of 60 and 75 for capital and labour respectively. The price of capital is $40 and labour is $35 per ear phone. If $58000 is allocated to production, what is the maximum o..
Monopolistic Competition and Intra-Industry Trade Consider the monopolistic competition model of increasing returns to scale studied in class. Consider a single country in isolation. The demand for each variety is the following: q(p)=S*[(1/n) - b*(p–..
If the two functions from questions 1( MB(q)=320-18q ) and 2 ( MC(q)=20+6q ) were demand and supply functions: Calculate total economic surplus associated with the crude oil market and indicate how much of this surplus accrues to consumers and how mu..
Suppose that the RBA decides to respond immediately to the decrease in the price of oil. In particular, suppose that the RBA wants to prevent the unemployment rate from changing in the short run, after the decrease in the price of oil. What should th..
List out at least one policy action that the Federal Reserve has taken to confirm that direction. Explain the effects of monetary policies on the economy's production and employment.
Suppose that people expect the Fed to hit its inflation target. A: Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run.
The reading summarizes powers granted by the Constitution - some powers are granted to the Federal government, some powers are granted to state and local governments, some powers are shared. After reviewing the assigned material on these powers, choo..
Typically the government: Inflation caused by people’s expectations of inflation is called self-fulfilling inflation. The _____ the unemployment rate and the _____ the rate of inflation, the higher the misery index. If the nominal rate of interest i..
Illustrate what we didn't realize at the time was that our fixed costs were underestimated by at least 30 percent. This means that we will have to adjust our price upward by at least.
Consider a public project to build a bridge. The government is deciding whether to undertake it or not. Let k = 1 if the bridge is built and k = 0 if the bridge is not built. The cost of building the bridge is C = 97. Assume the government knows θ. F..
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