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Jerome moonlights: He holds down two jobs. The higher-paying job pays w, but he can work at most eight hours. The other job pays but he can work as many hours as he wants. Show how Jerome determines how many hours to work.
A tax is placed on x so that x now costs Max $2 while his income and the price of y stay the same. How much of good x does he now demand? Would Max be as well off as he was before the tax if when the tax was imposed, his income rose by an amount eq..
what should happen to the elasticity of demand for its product
What happens to the potato grower's profit as a result of the increased interest rate? f. How does the change in interest rates affect the shape and/or position of the grower's short-run supply curve?
Calculate the expected market price. What output should you produce in order to maximize expected profits? What are your expected profits? How many new homes should you build, and what profits can you expect?
Suppose that due to a political conflict inside the country, there is a risk the government will default in its debt in t = 2. The investors perceive the probability of that default to be = 0:10. What interest will they demand (HINT: because inves..
How many driveways will be shoveled in equilibrium?
Why would your enthusiasm for rent control wane over time?
Suppose that, as the chairman of the Fed, you decided to "put policy on automatic pilot" and require that monetary policy follow an established rule. When might each of the following two rules be appropriate?
On a tropical island there are 100 potential boat builders, numbered 1 through 100. Each can build up to20 boats a year, but anyone who goes into the boatbuilding business has to pay a fixed cost of $19. Marginal costs differ from person to person..
In order to determine whether time is being spent optimally, a commercial fisherman has recorded the following information over the past year: "hours spent fishing" and "quantity of fish caught." What is the marginal product of fishing for hour sp..
women and selected minorities are systematically excluded from high-paying occupations and crowded into low-paying occupations, decreasing their wages and reducing domestic output. B. employers having high discrimination coefficients will be crowde..
Suppose that the two firms compete in output and set their output levels simultaneously. Given that firm 1's reaction curve is Q1 = 150 - 2Q2 and firm 2's reaction curve is Q2 = 150 - 2Q1, what are the two firms' output levels in equilibrium.
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