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If you have a private-ownership right to something, what does this mean? Does private ownership give you the right to do anything you want with the things that you own? Explain. How does private ownership influence the incentive of indi- viduals to (a) take care of things, (b) conserve resources for the future, and (c) develop and modify things in ways that are beneficial to others? Explain.
You are told that if you invest $11,000 per year for 23 years (all payments made at the end of each year) you will have accumulated $366,000 at the end of the period. What annual rate of return is the investment offering?
A firm has a production function represented by: q=L^(.75)K^(.25) Find a function for how much capital and labor a firm should hire to produce a given level of production in terms of the price of labor, w, and the price capital, r. Suppose w=15 and r..
Explain why do cattle ranchers slaughtering a large number of newborn calves and burying them in mass graves rather than transporting them to markets.
The Keynesians claim interest rates guarantee that savings will equal intended investment. The Keynesians claim that wages and prices are “downward sticky”. In the Keynesian model the velocity of money moves against GDP. Determine the socially effici..
Illustrate what are the net benefits of this program. What would the net benefits be at a discount reate of 2 percent.
There exists a debate among monetary policymakers as to the appropriate inflation measure that should be used to guide policies. Four alternatives are the consumer price index, the consumer price index excluding food and energy prices, the personal c..
What does mean that in microeconomics?
The Shockers Company is considering making a bid to buy Pacific Gulf Petroleum (PGP) Company. PGP has several oil wells producing 200,000 barrels per month. It is expected that the oil production will increase 2% per month for the next 3 years.
Firms in which of the following market structures are NOT able to engage in price discrimination?
As king of Medivalia, you are constantly strapped for funds to pay your army. Your chief economic wizard suggests the following plan: “When you collect your tax payments from your subjects, insist on being paid in gold coins. Take those gold coins, m..
The income elasticity of demand for your firm’s product is estimated to be 0.75. A recent report in The Wall Street Journal says that national income is expected to decline by 3 percent this year. What should you do with your stock of inventories?
The cost of running the government program ( assuming no storage costs). Illustrate what is the total price of the program to consumers.
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