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True/False: Determine whether each statement is true, false, or uncertain and explain why. Answers with no explanation will receive no points.
(a) If local house prices rise by $1 after local property taxes are reduced by $1, then the pre-tax-reduction equilibrium was inconsistent with the Tiebout (1956) model.
(b) In a world with adverse selection, at least the highest-risk types will buy actuarially fair insurance if it is offered.
(c) The US social security's delayed retirement credit program (DRC) should unambiguously increase the labor supply of workers above the full retirement age.
(d) One solution to the crowd-out problem of free public education (i.e. public education leading some families to have less education overall) is the use of educational vouchers. With this system, educational spending would increase for all the families. Thus, vouchers unambiguously improve the efficiency with which education markets function in the United States.
Share your experiences with malicious software such as adware, spyware, viruses, worms, etc. Have you had a computer infected with malicious software, if so how did you get rid of it? Also state why safeguards and software you use to prevent mal..
Suppose the demand for honey is given by Q=500-4p. Also, suppose there are 80 honey producers in the market. What is the equilibrium price of honey?
Suppose the consumption expenditure is C = $100 billion + 0.9*Y. Investment (I) is $100 billion, government spending (G) is $50 billion and exports (X) are $100 billion. Imports depend on the level of income as follows: M = 0.1*Y. Calculate the equil..
Profits associated with polluting for Friedman Inc. are π = 40Q - 2Q2, where Q = pollution emitted (in tons), and profits are measured in dollars.
Borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate and profit from the interest-rate differential.
illustrate what can you say about the price elasticity of demand for DVD players. Will this price reduction necessarily lead to an increase in profits for DVD player manufacturers.
Oligopolistic firms: The line which forms a 45-degree angle in the Keynesian cross model is
What does the economy look like when the economy is in an unemployment gap? What type of unemployment rate is it compared to the Natural Rate of unemployment? What about inflation?
What is the cost function associated with producing y units of output? Assume now that input prices are (w1,w2). What is the cost function associated with producing y units of output?
The majority of the world's diamonds comes from Country A and Country B. Suppose that the marginal cost of mining a diamond is $1,000 per diamond and that the demand schedule for diamonds is as follow there is moreshow problemThe majority of the worl..
When should you be willing to risk the support of your constituents and your contributors and perhaps the wrath of the local editorial board by taking an unpopular position?
Explain how unlimited desires and limited resources combine to create the need for economic analysis
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