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In 2014 the water supply for a large area near Charleston, WV was polluted by a chemical spill, creating a health hazard, causing residents to spend time and money acquiring bottled water, and resulting in negative press coverage on the quality of life in West Virginia. What might be the short-run and long-run effects of the chemical spill on aggregate supply, aggregate demand, and state GDP?
Determine what fiscal policy measure has a more direct impact to the economy, an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month. Explain your reasoning.
What is a stream of historical data known as?
Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,625,000, has annual operating and maintenance costs of $950,000, and requires overhauls every 5 years at a cost of $1,650,000. Using a 8.0 %/year ..
The rise in the US trade deficit during the 1980s was due largely to the rise in the US budget deficit. On the other hand, the popular press sometimes claims that the increased trade deficit resulted from a decline in the quality of US products relat..
If the marginal cost of the separate products is high, a seller should consider _______ bundling instead of ________ bundling.
What is the socially optimal (first-best) number of firms? Assuming that the market share of each firm when there are N firms is 1/N , what is the free-entry number of firms?
You are considering two alternative plant layouts, A1 and A2, to improve its current layout. The cash flows are shown below. The first costs represent the expenses of rearranging the current layout to the alternative new layout and the annual savings..
A Wartburg engineering student graduates with student loans in the amount of $41400 that have a repayment APR of 7.66%. How much will the annual payments be if they intend to pay off the loans in 14 years?
Using the simple household model C=[C(0)]+[C(1)]*(Y-t), assume that C(0) is $1000, taxes are $100, and C(1) is .5. What would be the impact on consumption spending if household incomes were to rise by $500? (Ignore the multiplier effects here.) What ..
Consider a small country that is an exporter of good X. Suppose the government imposes a tariff on imports of good X. Using one graph, showing demand and supply of good X in the home country, carefully illustrate the effect of a tariff imposed by the..
Both Hyundai and Nissan made their invesrments in the southern Indian city of Chennai. What is the advantage to be had by investing in the same region as rivals? If Hyundai, Nissan, their suppliers, and other automobile enterprises continue to make i..
Suppose that a monopolist sells a product to consumers with an aggregate inverse demand that is downward sloping in quantity, P (Q) = 1000 − 4Q. The total cost of producing Q units is C(Q) = Q2. What is the unregulated price-quantity pair? At this eq..
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