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The Tragedy of the Commons can be corrected by...
providing government subsidies for the resource.
assigning property rights to individuals.
making certain everyone in the economy has access to the resource.
conducting a cost-benefit analysis.
If the interest rate is 5%, what is the present discounted value of receiving $100 in two years? If the present discounted value of $100 received 3 years from now is $81.63, what is the interest rate?
Opponents of the minimum wage point out that the minimum wage:
Consider each of the following goods and services. For each, identify whether the law of one price will hold, and state whether the relative price, q g US/Foreign, is greater than, less than, not equal to 1, or equal to 1. Explain your answer in term..
It’s time to get a new laptop that is $2500. If you finance it, you will be charged 8% annual interest and it will take you two years to pay it off, paying each month. (A)How much will you pay each month for this laptop? (B) What are your total acqui..
Suppose that the city of New York issues bonds to raise money to pay for a new tunnel linking New Jersey and Manhattan. An investor named Susan buys one of the bonds on the same day that the city of New York pays a contractor for completing the first..
Total time available is 168 hours per week. Suppose Toni's wage rate is $10 per hour, the price of the consumption good is $1 per unit, and non labor income is $320 per week. If Toni chooses to take 118 hours of leisure per week, how much of the cons..
Which of the following trends favor a more labor-intensive method of production? A growing number of desperately unemployed people as the result of rural-urban migration. A limit to the level that wages can fall (subsistence)
What is the present worth of a $50,000 bond that has an interest of 20% per year payable quarterly? The bond matures in 5 years. The interest rate in the marketplace is 10% per year, compounded semiannually.
Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. EXPLAIN what happens in the short-run if coust..
The company depreciates its assets on a straight-line basis and has a marginal tax rate of 40 percent. The firm's cost of capital is 14 percent. Based on the internal rate of return criterion, should this machine be purchased?
What are the major determinants of the elasticity of demand? When would you want to own a business that sells price-elastic products? Why?
Assuming 100 identical firms in the industry (further assume that factor prices remain the same) what quantities will the industry and each firm supply when the product’s price is $9? What if prices are below $5?
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