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Explain the key assumptions behind the consumption function in the basic Keynesian model of national income determination.
How is equilibrium arrived at in the basic Keynesian model of national income determination?
For a profit maximizing monopolist, _____. In contrast, for a profit maximizing perfectly competitive firm, _________.
Explain this result in terms of the example in the question above. How might things change if the border were open, with no restrictions on immigration?
Let the inverse demand curve for tennis classes is: P = 90 - 1.5Q. If the equilibrium price is $15, calculate the optimal quantity and the consumer surplus. If price increase to $30, calculate the optimal quantity and the new consumer surplus.
Suppose Charlie Brown opens A lemonade stand. He hires Linus and Lucy for $12 a week ($6 each).He "renls" pitchers and spoons from his mother for $5 a week and spends $20 a week on paper cups, lemons, sugar, and other materials. Before he opened the ..
1. For each of the following economic conditions, place an X in the table to indicate theappropriate range in the Aggregate Supply Curve
Consider the following problem: A flight from Chicago to New York 2 weeks from today has 170 seats. 65 seats are “protected” as high paying and 150 are economy. Why do airline companies offer free upgrade to business/first class to economy passengers..
Assume that there are only two firms in an industry – a home firm and a foreign firm – and that the firms are competing in third-country markets. Explain a “reaction function diagram” for the two firms, including the definition of a “reaction functio..
Pope Benedict XVI suggested that âwealthy societies suffer from moral and spiritual poverty. Do you agree or disagree? Why?
Jim currently pays premium $P for his health insurance, which he purchases in a competitive health insurance market, and covers 80% of all his healthcare costs (i.e. 20% coinsurance rate; no deductible or catastrophic cap). If he were to instead purc..
China’s real GDP was 7,394 billion yuan in 2005 and 8,000 billion yuan in 2006. China’s population growth rate in 2006 was 0.5 percent. Calculate China’s economic growth rate and growth rate of real GDP per person in 2006.
A company purchases piece equipment for $100,000 with no money down. The company will pay the equipment off over 5 years by paying equal payments at the end of the each year at an interest rate of 6%. How much interest was paid by the company?
Consider a small open economy in the short run where the government imposes trade tariffs on corn. Under which regime (floating or fixed exchange), are the tariffs more effective in increasing output? Under which regime does the money supply increase..
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