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"No firm is completely sheltered from rivals; all firms compete for the consumer dollars. If that is so, then pure monopoly does not exist." Do you agree? Explain. How might you use Chapter 6's concept of cross elasticity of demand to judge whether monopoly exists?
Assume the economy starts out at point A. After that, the public anticipates that the Fed will use expansionary monetary strategy to shift the AD curve from AD1 to AD2.
Consider the Great Recession of 2007-2009, explain what you would expect to observe in the labor market during the recession and then explain what you would expect to observe in the labor market five years later. Questions to consider when formulatin..
You learned that Texas has a tax system that is generally “regressive” because it relies heavily on sales taxes rather than income taxes. What are the definitions of regressive, flat, and progressive when it comes to taxes? Why a sales tax is conside..
Suppose that demand for good increases and, at the same time, supply of the good decreases. What would happen in the market for the good?
A government program guarantees $18,000 in income, even for those who do not work at all. If the recipient earns income by working, then the $18,000 benefit is reduced by 50 cents for each $1 earned. Will this program eliminate the poverty trap?
The supply curve of a firm in the long run, is:
A friend of yours just bought a new sports car with a $4,000 down payment, and her $25,000 car loan is financed at an interest rate of 0.25% per month for 48 months. After 2 years, the "Blue Book" value of her vehicle in the used-car marketplace is $..
Consider this natural extension of stripped down poker game we examined in class. Initially each player puts a dollar in the pot. Then each player is dealt; each player’s card is equally likely to be high or low, independently of the other player’s c..
In 2000, the SEC proposed new regulations that would limit consulting work by accounting firms. This proposal was not passed by Congress. Do you think the legislators were trying to act in the public interest when they failed to pass this proposa..
Derive the simple bid-rent function for a model with only firms. Illustrate what factors can cause the city to grow larger.
Projects A requires an initial outlay of $1000 and yields $41200 in 4 year's time. Project B requires an outlay of $30 000 and yields $35 000, after 4 years. Which of these projects would you choose to invest in when market rate is 3 percent."
Many country clubs and professional sports teams use a creative pricing strategy for memberships in the case of country clubs or seating in the case of professional sports. the Baltimore Ravens charge fans a one-time fee of $8,000 for a personal seat..
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