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Altruistic reasons as well as springing from self-interest
: Please state what you think citizens, governments, and (ideally!?) firms should be doing in the rich countries to help those who live in the rest of the world. You can cite altruistic reasons as well as some springing from self-interest.
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Faces in making such monetary decisions
: Consider Denmark during the recent crisis that hit Europe. During this period, Denmark, like other European countries, faced the risk of a liquidity crisis. If such a crisis hits the economy, we know that one of the natural reactions of the Danish ce..
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Convenient way to express willingness-to-pay relationship
: One convenient way to express the willingness-to-pay relationship between price and quantity is to use the inverse demand function. In an inverse demand function, the price consumers are willing to pay is experessed as a function of the quantity avai..
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Simple theory of profit maximization in oil production
: From the simple theory of profit maximization in oil production, it can be shown that the price (P) is related to marginal revenue (MR) through price elasticity of demand (E). Assume that the demand curve is linear and continuous, Revenue = PQ and th..
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Price elasticity of petroleum demand
: What do you understand by the phrase 'price elasticity of petroleum demand' and the term 'marginal revenue'. Explain intuitively with aid of graphs what would happen to gross oil revenue if the price of oil should decrease or increase if the demand f..
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What is the market clearing wage
: Suppose that students are numbered 1-30. Students 1,4,7,10,... are firms, and others are workers. The firms are willing to hire a single worker, and their willingness to pay is their student number. A worker’s student number is the value of his leisu..
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The labor force and unemployed and employed
: Assume that in Babilonia no one is born or dies, but just spend their life either out of the labor force, or in the labor force and unemployed, or employed. Assume crucially that these percentages are unchanged, year after year. What are the steady-s..
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Compare three ways to reduce the demand for heroin
: Use economics to compare three ways to reduce the demand for heroin: (i) the substitution of another, less dangerous, and less debilitating drug, such as methadone for heroin, to registered addicts; If expenditures on preventing crime equal $200 bill..
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Calculate the net income
: Raytheon’s State College location had a gross income of $20,000,000 in 2015. In 2015 they also paid $3,000,000 in employee salaries, $4,000,000 in operating and maintenance costs, $800,000 in depreciation expense, $200,000 in loan principal payment, ..
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