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Think about a good or service for which you believe there has been a shift in demand or supply. Explain the reasons behind the shift and how that has influenced the equilibrium price.
What is a counterfactual, and what is the fundamental problem of causal inference? How does random assignment of a treatment address this problem? Describe David Freedman’s views on whether applying econometric techniques (e.g., regression analysis) ..
Which of the following changes might help solve a divisional conflict regarding a decision? If you were a manager of a cost center, which of the following areas would be of most interest to you? Which of the following actions is consistent with a man..
You have maxed out your $10,000 credit card, which is being charged 12.8% interest compounded daily. What is the minimum monthly payment to continue to break even? How much should you pay each week to get out of debt within one year?
Assume that all the factors affecting demand in this model remain the same, but that the price has changed. Further assume that the price changes are 100, 200, 300, 400, 500, 600 cents. Determine the equilibrium price and quantity.
A gardener can use one of the three brands of fertilizers during the next growing season. The following decision table shows the expected gross income per acre for each fertilizer brand and weather condition for the growing season.
Suppose the own price elasticity of demand for good X is -3, its income elasticity is 2, and the cross price elasticity of demand between good X and Y is -5. Determine how much the consumption of this good will change if:
Research at the University of Toledo indicates that 50% of students change their major area of study after their first year in a program.
Critics of federal banking policy argue that deposit insurance is a key reason for banking failures. The banks enjoy a "heads I win, tails the government loses" proposition. Several possible reforms of deposit insurance have been suggested. For examp..
All incomes received in producing the value of the nation's output are equivalent to the total spending made on the final goods and services.
Consider a representative consumer whose preferences are represented by the utility function, where c is consumption and I is leisure. The consumer derives income from wages w and dividend income. Suppose that the government imposes a proportional in..
Describe how financial institutions create money. Describes the process of creating money. Differentiate process of creating money from minting coins or printing bills. Explain how the Federal Reserve System uses government borrowing to create money
The "Vintage Sisters" collect old junk, fix it up, and sell it at craft fairs as a hobby. All of their costs are covered by their poor father who lets them use his shop, tools, and paint for free. When pricing their stuff, what elasticity of demand s..
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