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In an inquiry into the nature and causes of the wealth of nations, Adam Smith listed three reasons for productivity to increase with specialization. What are these three reasons?
What effect, if any, does each of the following events have on the price elasticity of demand for corporate-owned jets? The cost of manufacturing corporate jets rises. Reduced corporate earnings lead to cuts in travel budgets and increase the share o..
Suppose the following were facts relating years of education to average annual income of individuals. Would you use the inductive or deductive method to derive an economic principle from these facts.
The market price of cheeseburgers in a college town decreased recently, and the students in an economics class are debating the cause of the price decrease. Some students suggest that the price decreased because a new type of grill allows restaurants..
Briefly describe what a microprocessor is and explain its relationship to software. List the four types of memory and briefly describe how each one works.
In 1988 the US gross domestic product (GDP) increased to $4.90 trillion at year end, from the 1987 year end level of 4.54 trillion in actual escalated dollar values. In the same year, the consumer price index rose approximately 4%. What was the const..
Stone Age Surfboards is a small manufacturer of two types of popular low-tide surfboards, the Gray stone and the Lava models. The manufacturing process consists of two departments: fabrication and finishing. The fabrication department has 8 skilled w..
Define the three types of agency authority. List and discuss the provisions of the Family Medical Leave Act. What technology company recently adopted very generous provisions for medical leave for pregnancy?
What are the "boundaries' of a firm? What determines the extent of vertical boundaries? What determines the extent of horizontal integration? Use a cost benefit analysis to describe the optimal boundaries of a firm. Why does the evolution of large fi..
Why do some economists believe the Fed needs to unwind monetary policies instituted during the recession? What is the risk in doing so?
A firm's current profits are $450,000. These profits are expected to grow indefinitely at a constant annual rate of 3 percent. If the firm's opportunity cost of funds is 6 percent, determine the value of the firm: The instant after it pays out curren..
Using a two-dimensional diagram of supply and demand, Illustrate the case of a supply cooperative maximizing net revenue in the short-run. a) What is the optimization criterion for determining the quantity supplied by the cooperative? b) Label the pr..
Suppose the government subsidizes any business that uses steel in the production process. Also, suppose that a new study proves car exhaust is a major carcinogen. Graph the shift in supply and/or demand. Be sure to label the new equilibrium price and..
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