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The Solow model with population growth and labor-augmenting technological progress predicts balanced growth in the steady state. Growth rates of which variables are predicted to be balanced (i.e., will be equal) in the steady state?
Suppose it takes a total of 100 hours to produce a car (mathematically speaking, this means one hour of work “produces 0.01 cars”). If the average wage in car making is $50 per hour, and each car needs $1,000 worth of inputs other than labor, What is..
Jimmy deposits $4,000 now, $2,500 3 years from now, and $5,000 6 years from now. Interest is 5% for the first 3 years and 7% for the last 3 years. How much money will be in the fund at the end of 6 years? What is the present worth of the fund? What i..
The ABC Construction Company is considering the purchase of a diesel power shovel to improve its productivity. The company finances the purchase by borrowing from a local bank with no origination fee. The pricipal will be repaid with the compounded i..
The aggregate supply curve shifts is
The equation for a demand curve is P = 48 – 3Q. Calculate the elasticity when moving from a quantity of 5 to a quantity of 6? Show your work. Based on your answer, is this segment of the demand curve elastic or inelastic?
What would you expect to happen to the domestic money supply as R and Y both increase along a stable BB curve? Explain in intuitive terms what forces would tend to bring about such a change in the money supply.
Explain terrorist attacks foster instability and may affect productivity over the short and long term.
For the following utility functions and prices. Determine the optimal bundle of x1 and x2 given the stated prices and income. Illustrate the optimal consumer choice decision in each of the two cases below.
Shortly discuss how the development of the Internet has changed the market structure in which companies operate. Assume that most firms can be categorized as being in perfect competition, monopolistic competition, oligopoly, or monopoly. Keep in mind..
Compute the price of a bundle containing 100 units of good X, 150 units of good Y, and 25 units of good Z.
Consider a consumer who has utility function u(x, y) = min{2x, 3y} where x, y are amounts of goods X, Y consumed respectively. If there is an inflation which doubled the prices px, py as well as the wealth w. Consumer preference is still the same as ..
Create a table where Q equals 0, 10, 20, 22.5, 30, 40 50 and 55. In the table include Quantity, Price, Total Revenue, Marginal Revenue (where MR equals the change in TR divided by the change in Q in the table), MR where MR=a-2bQ (include an explanati..
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