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Why do many prospective voters choose to watch sports on television rather than watching the news or political roundtables? In your answer, be sure to mention the role played by rational ignorance.
According to the rule for optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company. In offering such training programs, is a company violating the optimality rule?
Assume that an economist states that she believes the Federal Reserve should ensure that nominal GDP grows by 5% every year and that is all the Federal Reserve should do. Which of the following is true about this economist?
Skyscraper City has a subway system, for which a one-way fare is $1.50. There is pressure on the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed, thinking that this will mean Skyscraper City is losing one-third of its revenue f..
What is the best practices frontier? How does this relate to competitive advantage? Explain why rent seeking competition tends to dissipate rents-to drive them down so that there are no abnormal rents?
During World War II, both Germany and England had plans for a paper weapon: they each printed the other's currency, with the intention of dropping large quantities by airplane. Explain why might this have been an effective weapon.
What are the differences between economic and accounting concepts of cost? How are prices determined under perfect competition? How are prices determined under monopoly?
Suppose that there is an exogenous unexpected decline in consumption spending by households. Use the IS-LM, AD-AS model to derive the short-run and long-run effects on i, P, and Y.
(Population growth and technology growth) Consider an economy that is described by the production function Y= K^1/2 (LE)^1/ 2. Moreover the depreciation rate of capital is (delta) o = 0.15, the population growth rate is n = 0.05 and the technology gr..
Since August, automobile inventories have been rising. Moreover, recent unemployment numbers suggest that European economies will grow more slowly than expected. What direction are auto prices likely to go?
Riley deposits $4,000 cash in her checkable deposit at Fershur Bank. If the desired reserve ratio is 5%, Fershur Bank’s
It takes a phlebotomist 10 minutes to complete a blood draw. The supplies for each draw cost $5 and the phlebotomist earn$25 per hour. the phlebotomy lab is designed to accommodate 24000 draws per year. its rent is 100,000 per year. what are the aver..
Assume that you agree with a venture capitalist that you will pay her $1.557 million 3.5 years from now for her investment in your invention. She requires you to set aside an amount of money semi-annually, starting now, to ensure for the $1.557 milli..
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