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Rigid rules have the unintended effect of _____.
a. showing minimum acceptable behavior
b. creating an environment in which people do not know what is expected of them
c. decreasing visibility power
d. reducing interpersonal tension
e. increasing performance
Use axiom of transitivity to prove that indifference curves cannot touch each other. Use axiom of non-satiation to prove that indifference curves will always be downward sloping and utility functions will always be upward sloping. Use the axiom of di..
Suppose the firm has a production function of the form f(k,l,m)=(klm)^1/4 and faces input prices (1,2,8) for (k,l,m) respectively. What is the firm's cost function? What is their supply function? How much capital k does the firm use to produce q=4?
Suppose he is offered fair insurance with a $3000 deductible. What premium will he pay and what will be his expected utility with insurance.
Suppose the Fed conducts an open market sale by selling $10 million in Treasury bonds to Acme Bank. Sketch out the balance sheet changes that will occur as Acme restores its required reserves (10% of deposits) by reducing its loans. The initial balan..
Which of the following is a rate that should theoretically serve as a floor for the Fed funds rate? A dealer is said to be running a "matched book" if. An increase in the supply of reserves in the banking system leads to an increase in the Fed funds ..
Which of the following is NOT a possible way for a price-fixing scheme on potatoes to fall apart? Which of the following determine an individual's wage? In 2011, Google introduced its social networking site, Google+. Even though Google+ is cleaner an..
The FOMC wants to expand the money supply by $120 million and decides to buy bonds on the open market. Suppose the reserve requirement is 40% and banks do not hold any excess reserves.
Explain how do economists distinguish between the absolute and relative sizes of the public debt. Why is the distinction important.
In year 1 the price level is constant and the nominal rate of interest is 6 percent. But in year 2 the inflation rate is 3 percent. If the real rate of interest is to remain at the same level in year 2 as it was in year 1, then in year 2 the nominal ..
q.as per milton friedman business has only 1social responsibility to create profits as long as it stays within the
Calculate equilibrium quantity. Now suppose that the government imposes a tax on consumers of $1 per unit. Recalculate the prices for consumers and producers, and the quantity sold.
Public health information can be broadcast at a cost of $100. Public health information is a pure public good, in that many people can use the information simultaneously and preventing people from using the information is very difficult. At a price o..
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