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If you and I sell donuts at our respective two businesses, Dunky Doos and Kreamy Krisps, as two competitors, can we agree to set a base price on the donuts (no donut will sell for less than 39 cents)? Why or why not?
Assume that a painter produces 20 paintings this year and 20 paintings next year. What is the annual change in nominal GPD if the price of paintings rises from $1,000 this year to $1,500 next year? Can you conclude that the economy grew from this yea..
The United States experienced two oil shocks during the 1970s in the aftermath of the Middle East tensions. Congress said no to high oil prices by passing a law prohibiting prices above a legal limit. Supporters of such price controls said this was a..
The behavioral economist Robert Frank speaks of the bounded nature of rationality in his 2008 interview (Challenge 2008) and discusses the axiom of the independence of irrelevant alternatives in rational choice theory.
One year of life is then worth a little less than $67,000. Actually, if you are talking of Quality adjusted life year, your last calendar year might be worth considerably less than one quality adjusted life year ignoring that. They can’t spend more t..
Assume that the price for the services of tarot card readers has risen and sales of these services have fallen. This means that some event has caused the equilibrium price to rise and the equilibrium quantity to fall. Which of the following events co..
Now suppose the economy currently produces 2,500 garments of clothing and 3,000 bushels of wheat, illucidate which is represented by point B. Under these conditions, the opportunity cost of producing an additional
Assume that your favourite candidate is proposing a 15 percent flat tax to replace our personal income tax. Analyze the tax and tell whether it is a good tax alternative or not. What are the strengths and weaknesses of the tax?
How does an increase in the currency-deposit ratio affect the money multiplier? What is the effect of an increase in the reserve-deposit ratio? Explain the direction of changes in both cases in terms of bank balance sheets and the ability of banks to..
q.on january 2d 2012 canon expects to ship 750000 all-in-one fax printers and copy machines from its plant in japan to
Which of the following will not cause the MPL to increase?
Suppose that your company bought a product for $200,000 and put it in service in 2015. The product you bought will be depreciated with the GDS using half-year convention. The cost basis for the product is $200,000. If we assume that this product is a..
Explain how low must a quota be in effect to have an impact. Using a demand-and-supply diagram, illustrate and explain the net welfare loss from imposing such a quota.
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