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1. In your view, is the economy currently operating in the Keynesian, intermediate, or neoclassical portion of the economy's aggregate supply curve? Explain.
2. If households decide to save a larger portion of their income, what effect would this have on the output, employment, and price level in the short run? What about the long run?
Sam has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C,L) = CL. The household also has a home production technology summarized by a production function. How much time will Sam spend in leisure? How ma..
What are the limitations of the Specific Factor Model? In what ways does the Hecksher-Ohlin Model complements the Specific Factors Model? Given the limitations of the Ricardian Model, in what does the Hecksher-Ohlin Model complements the Ricardian Mo..
Assume that a monopolist has a demand curve given by P = 1500 - 4Q, and T C = 100 + 5Q2 with MC = 10Q. Calculate the dead weight loss. Calculate the producer surplus
At higher interest rates, banks will want to hold more reserves. An increase in the interest rate is associated with an increase in bond prices. Individual banks always respond quickly and significantly to changes in the discount rate. When one curre..
Suppose the government spends $500M on a project that has absolutely no value to the country. If taxes were raised $500M to fund this project, the Keynesian model predicts that this will have no net effect on output in the economy. If the government ..
Which of the following is an example of offshoring? Thomas L. Friedman, a columnist for the New York Times, advanced a theory that he called the "Golden Arches theory of conflict resolution." What does that theory state?
What is supply and demand. Illustrate what is the value of the tax revenue collected from the buyers. Why wasn't the government able to collect $12 per tire on 60 tires sold( the original equilibrium quantity).
Describe some of the conflicting social, economic, and environmental costs, benefits, and issues associated with construction of the Three Gorges Dam.
How did you decide what price to charge for your services? Did you think the price was worth more than the effort you put into it? Think about the competitive situation you faced in the business. Try to determine why the prices received by you or..
Project ABC requires a $22,382 expense every third year forever, with the first expense occurring at EOY 3. What is the capitalized worth of Project ABC is t=15% annually?
Davy Metal Company produces brass fittings. Davy's engineers estimate the production function represented below as relevant for their long-run capital labor decisions.Is this an increasing, decreasing, or constant returns to scale production function..
Construct a 99% confidence interval for the population mean. (round to 2 decimal places.)
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