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What happens to supply, price, and quantity when interest rates are lowered to help spur the economy?
What will happen to the rate of inflation? How would the central bank react to the change in velocity if it pursued an NGDP target instead of a money stock target?
A monopolist faces a market demand curve given by P(y) = 100 y. Its cost function is c(y) = y 2 + 20.
a. Illustrate and explain price skimming as a form of price discrimination. How is the consumer affected by price skimming?
Consider the following game: player 1 chooses from 1 of 3 actions (say X, Y, Z) and player 2 follows by choosing from 1 of 2 actions (say J and K), having witnessed player 1’s choice. Finally, player 1 chooses from 1 of 2 actions (say G and H). For t..
Explain factors that weaken the case for the public sector action such as: the special interest, the shortsightness effect, rent seeking, and weak incentives for operational efficiency.
Calculate the tax rate on wages necessary to pay Social Security benefits this year assuming the system is operating on a pay-as-you-go basis. calculate the tax rate necessary to pay promised benefits on a pay-as-you-go basis. What can be done to low..
The method used to prepare the budget can also affect the amount of time it takes to complete the budget. For example, companies that use participative budgeting will likely take longer to complete the budget process. What is participating budgeting?..
In the late 1990s, the federal Minister of Finance announced that expenditures would rise, yet he still predicted that the budget surplus would increase. How is it possible that in the face of rising expenditures the budget surplus may increase? Unde..
Show that for 3k/4 > f > k/4 a monopolist would provide products at both end points but the efficient solution is for a single product. Explain why the monopolist has excessive incentives to introduce the second product.
First degree price and third degree price discrimination work to increase a firm's profits by more accurately matching willingness to pay to the marginal costs of production. First-degree price discrimination works to increase a firm's profits by con..
Alex is willing to buy the last ticket to the Billy Bragg concert for $15, while Jake is willing to pay $25. Alex is first in line and buys a ticket for $15. He then resells his ticket to Jake for $20. By reselling the ticket instead of going to the ..
Who should take part in assessment process and why? Why is the needs and resources assessment being conducted?
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