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Briefly describe your own beliefs about the potential value of low-energy compact fluorescent light bulbs, your attitude toward them, and your intention about buying one the next time you need to replace a bulb.
Alex wants to measure the nominal GDP of $993 billion in 2008 dollars. From the data he gathered, he knows the deflator for 1998 is 30 and for 2008, it is 74. What was real GDP in 1998?
What costs are associated with imperfectly anticipated inflation? Discuss them carefully. Who loses, and who gains, when inflation is higher than we expect?
Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. EXPLAIN what happens in the short-run if custo..
Lloyd Corporation’s 14% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 30 years, are callable 5 years from today at $1,050. They sell at a price of $1,353.54, and the yield curve is flat. Assume that interest rates are expec..
When yield management is implemented, which of the following does NOT result?
The market for beer is perfectly competitive. The price of a barrel of beer is $40. Fine Beers is a company that produces the beer and has total cost function of TC = 480 + Q2 (Q squared). It also has a marginal cost given by MC = 2Q, where Q is barr..
Even if the firms in a monopolistically competitive market collude successfully and fix price, economic profit will still be competed away if there is unrestricted entry. Do you agree with this statement? Support your answer. Will price be higher or ..
A large importing country utilizes a binding import quota to support its domestic price. Suppose this country experiences a 25% depreciation of its currency relative to all other countries. Construct a scenario to show how this currency depreciation ..
The following questions refer to the following graph of a consumer's indifference curve. What is the consumer's marginal rate of substitution between points A and C? What is the consumer's marginal rate of substitution between points C and B?
What do you think about the often proposed "flat tax" as a better alternative than our current system allowing for credits and deductions?
When the production of a good involves a positive externality, which of the following will be true?
You want to study the probability of a basketball player getting drafted in the NBA. You collect data on their performance in college basketball tournaments. The dependent variable is 1 if the player gets drafted, and 0 otherwise. What would your nul..
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