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Explain what costs must be covered in the short run for the firm to remain open.
A prospective change in government purchases. Suppose that people learn in the current year that government purchase will increase in some future year. Current government purchases do not change. What happens in the current year to real GDP,Y; Consum..
Peter consumes comic books (c) and sodas (s). His utility over comic books and sodas is given by u(c,s) = −1 c − 1 s . His income is $10/weeks. Please do not be confused by the fact that the utility here is going to be a negative number, it has no si..
One important term that we evaluate in economics is that of scarcity. How does the role of scarcity affect decisions that you have to make?
This legislation is labeled "environmentally friendly." Analyze the impact to the environment.
In classical macroeconomic theory, the concept of monetary neutrality means that changes in the money supply do not influence real variables. Explain why changes in money growth affect the nominal interest rate, but not the real interest rate.
Charles is a senior engineer who has worked for 18 years since he graduated from college. Yesterday in the mail, he received a report from the U.S. Social Security Administration. In short, it stated that if he continues to earn at the same rate, soc..
If the data represent 10 months of production for one plant of a specific company, would you consider this to be a short run analysis? How would your answer to question 3 changes if you were told that the data represent 10 different plants during a p..
Competition at the Pump People often observe that prices of some items (gasoline prices, because they are very visible, are an example) charged by different sellers do not vary much and assume that this is evidence of a lack of competition or even co..
You decide to purchase a new home and need a $200,000 mortgage. The interest rate is 4%. What is the yearly payment to the bank.
If he now produces 35 bow ties and 15 neckties, what is the opportunity cost of producing an additional 15 neckties?
Do you agree with this statement? Could you make an argument that these markets are not competitive?
An 8000-kW plant using similar technology is estimated for completion in July 2001 on Adak. What is an order-of-magnitude estimate?
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