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Suppose that you are currently a college senior. You are currently working a part-time job that pays $2,000 per year (call it Y1), but you expect to earn $20,000 next year (call it Y2), after you graduate. Assume that there is no inflation and that the interest rate is 10% per year.
Suppose that your current income (Y1) doubles to $4,000 per year. What happens to your current consumption? What happens to your saving?
How does an expansionary monetary policy work? (Describe the steps through which an increase in money supply affects the real GDP). How does fiscal policy work? (Describe the steps through which an increase in G or TR, or a decrease in TX, affects..
A total of 1000 residents in Minnesota were asked which season they preferred. The results were 100 liked winter best, 300 liked spring, 400 liked summer, and 200 liked fall. If the data were summarized in a frequency table.
Making dresses is a labor-intensive process. Indeed, theproduction function of a dressmaking firm is well described by theequation Q = L - L2/800, where Q denotes the number ofdresses per week and L is the number of labor hours per week.
A firm has a production function Q=F (K, L) with constant returns to scale. Input prices are r=$2/ K-unit and w=$1/L-unit. The output expansion path for this production function at these input prices is a straight line through the origin.
skilled technicians using equipment produced by two leading competitors in the medical equipment industry. Records for the current year show an average of 24 tests per hour performed on the A-1, and 51 tests per hour on a new machine, the Caltec.
A cupola for a foundry was purchased for $3000.$500 more was spent on its erection and commisioning.The estimated residual value after 10 yeras was $700. A)calculate annual rate of depriciation. B)Determine the amount of depriciation at the end of ..
suppose in 2010 the cost of a market basket of goods was 2001. in 2012 the cost fo the same amrket basket of goods was
only consume ice cream and bananas in the form of bananasplits, which i make with 3 scoops of ice cream and one banana. The price of ice cream is $.50 a scoop. Bananas are $.25 each. I have $5 dollars to spend on ice cream sundaes this week.
Under patent protection, a firm has a monopoly in the production of a high-tech component. Market demand is estimated to be: P = 100 - 0.2Q. The firm's economic costs are given by: AC = MC = $60 per component.
find the covariance between hourly wage X and education Y (measured in years of schooling) using the following summary statistics for a sample of 10 workers in a plant. xbar = 11.775 ybar=13.8 sum of (x-xbar)(y-ybar) = 103.55 sum of xy =1728.5
In 2012, the box industry was perfectly competitive. The lowest point on the long-run average cost curve of each of the identical box producers was $4, and this minimum point occurred at an output of 1,000 boxes per month. The market demand curve..
During a particular year, a consulting firm has the following costs: 575,000 in wages and salaries to employees; 70,000 in rental payments; and 27,000 for office supplies, utilities and advertising. In Addition Janis the owner of the firm is full ..
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