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US cigarette makers face enormous punitive damage penalties after losing a series of class action lawsuits that heaped penalties amounting to several hundred billion dollars on the tobacco industry. In spite of the huge penalties, The Wall Street Journal reported "The damage to cigarette makers is generally under control".
a) What action do you suppose the cigarette companies took to avoid bankruptcy?
b) Why did this action succeed?
What happens to labour supply increases?-He will work more as wages increase, but only if n > 0.
Describe the creation of money from excess reserves and multiple deposit expansion in banking system. How does the multiplier affect the supply of money?
If the government starts welfare policy which pays B to all non workers and 0 to all workers, at what value of B will Mike opt out of the labor force and go on welfare?
The nation is divided into __12______ Federal Reserve districts, each having a Federal Reserve Bank.
Consider a firm that has just built a plant, which cost $20,000. Each worker costs $5.00 per hour. Based on this information, fill in the table below:
Suppose two identical firms produce widgets and they are the only firms in the market. Find the Cournot-Nash equilibrium.
If you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking? Is the project profitable at an interest rate of 12 per cent? Provide numerical calculations in support of your answers.
The following quotations are from an article in the Financial Times on November 9, 2007:
Discuss how your answer relates to the income and substitution effects of a price change from Knoxville food prices to Berkeley food prices.
Compute the employment rate (i.e., number employed: population) in each year? How can employment rate may go up or down in the unemployment rate stays the same? How can employment rate go up if unemployment rate also goes up?
Which of the following goods or services would be most likely to be subject to (1) external economies of scale and (2) dynamic increasing returns? Describe your answers.
Describe the Soviet Rapid Development Model
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