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What is price-wage rigidity? Keynes assessment states that wage-price rigidity requires government involvement. Why? Why not?
Florida Citrus Mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to the price and output of Florida oranges under the conditions below. What are your predictions? The American Medical Ass..
What is "crowding-in" effect? Explain the factors which determine the strength of the crowding in effect. What is "crowding out"? Why is it important in discussions of fiscal policy?
Assume that you working in the marketing department of Keebler. The company is developing a new cracker. You are convinced that promotion is the best way to launch this new product. Explain what the term "promotion" means, discuss how it is different..
There are two players. Players move sequentially starting with player 1, followed by player 2, followed by player 1 again etc. Each time that a player moves, she can choose a number from the set {1, 2, 3, 4, 5, 6, 7, 8, 9, 10}. The first player who b..
Suppose that consumers’ incomes increase by 16 percent, which results in a 0.4 percentage increase in the consumption of farm goods at current prices. What is the income elasticity of demand for farm goods?
Suppose, as part of an active monetary policy, the Federal Reserve sells government and other securities from its existing portfolio holdings to the banking and financial sectors and the non-bank public. Suppose also that the banking sector is fully ..
"Roundabout production" leads to:
Why are entrepreneurs willing to supply goods and services for consumers at attractive prices? Is it because they care personally about the consumers?
Explain the connection between- tax burdens and elasticity, excess burden and elasticity
An emissions fee is paid to the government, whereas an injurer, who issued and held liable, pays damages directly to the party harmed by an externality. What differences in the behavior of victims might you expect to arise under these two arrange..
Calculate the marginal product of inputs x1, and x2. What is the ratio fo x1 to x2 required to produce the output in the cheapest way possible?
The minimum price at which a few of the producers are willing to sell a pound of cheese is $0.06, and the price floor is set at $0.17 per pound. With the price floor at $0.17 per pound of cheese, producers sell 212.5 billion pounds of cheese (some to..
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