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The park service wants to restrict the number of visitors to Yellowstone National Park to Q*, which is fewer than the current volume. It considers two policies: (A) raising the price of admissions and (B) setting a quota. Compare the effects of these two policies on consumer surplus and welfare. Use a graph to show which policy is superior according to the welfare criterion.
A nation's net foreign investment position will worsen or decline if it's balance of payments shows a
In order for a price-discrimination scheme to be effective at boosting profit, the seller must...
Technology is viewed by economists as a source of comparative advantage but technological advantage is often transitory. Use the Product Life Cycle (PLC) Theory to explain the role of technological innovation as a key determinant of the trade pattern..
q.the husband of miss young is a monopolist with constant marginal costs of 50 that can sell to three groups of
An economy has the following Money demand function: (M/P)d= .4Y/i^.5 . Where is the nominal interest rate. Derive an expression for the velocity of money. What does it depend on? Explain why this dependency may occur.
Suppose that a firm’s long-run average total costs of producing an individual income tax return is $75 when it produces 1,000 returns and $75 when it produces 1,200 returns. For this range of output, the firm is experiencing
Suppose autonomous consumption is $500, government spending $1,000, panned investment is $1,250, and net exports are -$250 and the MPC is 0.8. What is the equilibrium value GDP?
Unemployment according to Marx could be classified as what type of unemployment?
Suppose that the automobile industry in Japan can be characterized by the model of monopolistic competition. Assume the following values for the parameters of the demand and cost fuction: assuming that annual sales of automobiles are equal to 900,000..
A forward premium for a given currency (say the nominal bilateral exchange rate value of the dollar where S = 80 yen/1 dollar = 80) occurs when the value of the currency as given by the forward spot rate appreciates such as S = 85 yen/1 dollar = 85. ..
The annual operating costs increase by 15% each year as the machines age. If the interest rate is 8%, what is the net present cost for the Quik-Skwish machine?
Briefly discuss what measuring inequality involves, and provide two examples for doing so. measuring income inequality means dividing up the population into various groups and then comparing the groups.
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