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Charlie has a utility function U(A, B) = A + B, the price of apples is $3, and the price of bananas is $2. If Charlie’s income were $120, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?
Contractionary monetary policy causes. Which of the following would cause the short run aggregate supply curve to shift to the? right?
Given a two country (A & B) and two goods (X & Y) model with identical endowments: Draw the PPF for country A that displays increasing opportunity costs and also shows that country A produces more of good X. Explain why increasing opportunity costs o..
Summarize Kuznets's Inverted-U Hypothesis and discuss the conceptual merits and limitaions of this hypothesis, especially in reference to African countries.
Gilberto receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real interest rate of 4% per year. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate..
Why might these firms agree to form a cartel. If such a cartel is formed, use the prisoner's dilemma to explain why it may or may not survive.
Suppose macroeconomic policy makers want to keep interest rates constant while increasing consumption in the short run when prices are fixed. Describe the mix of macroeconomic policies that can achieve this dual macroeconomic objective. Describe what..
Perfect competition and economic efficiency. The market demand curve for widgets is P = 30 – Q while the market supply curve is P = Q. What is the equilibrium price and quantity in the widget market under perfect competition? What is the economically..
Assume that Densa Inc. falls 10 percent short of producing the profit maximizing output. Would a higher product price lead to greater output
Suppose that the GDP of California increases by 8.0% each year. how long will it take for the GDP of California to double? Suppose that the gdp of Oregon today is exactly twice what it was 32 years ago. What was the average annual growth for Oregon o..
Choose your favorite company, and then review a press release made by that company (usually located on the company’s Web site). Include the link to the company’s press release within your primary post so that your fellow classmates can review it. Aft..
In a particular competitive market, the sellers have private marginal cost (PMC) equal to 2.5 at every output level. The demand curve has the equation P = 52.5 − (5Q/2), where Q ≤ 21 is the quantity bought at price P ≤ 52.5. Explain how we can tell t..
The cops catch Bob breaking into a Pepsi vending machine and arrest him. What is the process for charging him and who has and what is the burden of proof?
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