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How many fish should a commercial fisher try to catch in a day? Should he catch as many as possible or return to dock before filling the boat with fish? Under what economic circumstances should he not even take the boat out?
If a firm is incurring an economic loss, would society be better off if the firm shut down? Would the firm want to shut down? Explain.
Is Apple Computer a perfectly completive firm? Explain your answer.
illustrate what sales output and price should it set. what strategy would you recommend.
Pete and Paul live in an exchange economy (so we can use the Edge worth-box). The economy has endowment of 10 cheese slices and 10 crackers. Is Pete consuming 3 crackers and 5 cheeses slices a Pareto-optimal allocation? If not, how could you rearrang..
what is the value of the money multiplier given each of the following sets of values for CUR and RES? what would be the equilibrium value of total money stock assuming a monetary base of $10 trillion?
Use the sticky wage theory of aggregate supply to explain what will happen to output and the price level in the long run. What role does expected price level play in the adjustment?
Determine if the following situations describe a game or a decision. Indicate what specific features of the situation caused you to classify it’s you did. A party nominee for president of the United States must choose whether to use private financing..
Business firms become pessimistic about their future earning capacity as do banks. Nominal interest rates fall during recession.
Which of the following factors shift the demand curve?
You want to purchase a security that will pay you $1,000 seven years from now. If you want to earn an annual nominal rate of 6.5 percent, how much should you pay for this investment today? You invest $3,600 today at a nominal annual rate of 5.5 perce..
What market structure would this industry fall under? What are the names of other firms in this industry? Is it monopolistic competition, oligopoly, monopoly, or perfect competition?
After rallying for the most of February to reach record highs late in the month, the S&P 500 stock indez fell sharply on Friday March 6 following news that the economy added 295,000 jobs, bringing the unemployment rate down to 5.5%. An analyst has be..
Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units o..
He drove this car until 2003 when he bought a Honda Civic for $18,000. If the price index in 1969 was 36.7 and the price index in 2006 was 180, Illustrate what is the price of the Dodge Dart in 2006 dollars.
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