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Q1. Suppose that you can schedule a worker up to four hours per day. The benefit function is given by B(H) = 500H - 22.5H2 and the cost function is given by C(H) = 100 +15H2. The corresponding marginal benefit and marginal cost functions are given by MB(H) = 500 - 45H and MC(H) = 100 + 30H. What is the best choice of hours for this worker?
Q2. Is the price mechanism of a perfectly competitive market a good mechanism to allocate gasoline?
Solve for equilibrium real output and also solve for the equilibrium interest rate.
Show that a specific tax of $3.70/unit generates the same revenue as a 20% ad valorem tax
For each values for the MPC, determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease.
Under what situation would Gore be better off giving Bush a head start on putting mutually his presidential ticket.
How much income gets you into the top quartile or quintile. Discuss the issues of regressive, proportional, and progressive taxation.
How would you use these cost and revenue estimates to determine whether a sales force increase or possibly a decrease is warranted.
Oil and gasoline prices are a concern in the United States. Why does this economic problem exist from a supply and demand perspective, what can be done to improve resource allocations.
The equilibrium quantity increase or decrease depends on Demand
Repeat these calculations for the third, fourth, and fifth years, assuming that the Government taxes at a rate each year and has noninterest expenditures annually.
James earned $10,000 in income in his new job in Nova Scotia after the move and his employer paid him $1,000 specifically to cover the cost of the move, but doesn't specify what it can be used for.
Determine the impact on the economy if the central bank in U.S. used inflation targeting.
Bud has very limited store space and has decided to limit his product line to one brand of beer, choosing to forego the snack food lines that normally accompany his business.
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