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What amount will be required to purchase, on an engineers's 40th birthday, an annuity to provide him with 30 equal semiannual payments of $1000 each, the first to be received on his 50th birthday, if nominal interest is 4% compounded semiannually?
For each of the following goods, give your best estimate of its most likely degree of rivalness and (relative) exclusion cost, using the definitions of these variables and the information in the course notes on externalities and public goods.
Define the natural rate of unemployment and cyclical unemployment. How does the government measure the economy’s rate of unemployment? What problems arise in interpreting unemployment data?
Broad overview of economy and oil in the world
Illustrate what is the elasticity of demand if you raise the price of your airline's tickets by 6% also the number of tickets sold decreases.
Assume that the marker for tradable emissions permits by power plants has been operating efficiently for several years. An engineering firm then invents a lower cost device for pollution abatement. What happens to the equilibrium market price of a tr..
1. Suppose that Congress imposes a tariff on imported autos to protect the U.S. auto industry from foreign competition. Assuming that the United States is a price taker in the world auto market, show the following on a diagram: the change in the..
a) Unemployment is strongly countercyclical. Is this stylized fact of the business cycle fact consistent with the Business Cycle theory?
Suppose your neighbour likes to repair motorcycles in his front yard during evenings and on weekends, and he earns $400 per week from this work. If your neighbour has a right to operate this business, what is the efficient outcome? If you have a righ..
Suppose real GDP is $100 billion below potential and the government implements an expansionary fiscal policy with the intention of eliminating the output gap. The fiscal policy consists of a $100 billion increase in government purchases and a $100 bi..
Explain the differences of Marshallian, Hicksian, Slutsky demand curves. You can explain verbally or you can use the graphs. Suppose that the price of good 2 increases from the initial prices. Explain Slutsky substitution effect and Hicksian substitu..
How does this relate to idea that diminishing marginal utility must be understood in context? Many people buy too much on their credit cards, even though they knows they will be sorry when y get their bill. Relate this fact to idea of time inconsi..
What are the security implications of a tool such as Wireshark?
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