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Consumers buy only Coke and Pepsi (what?). The fixed basket consists of 20 and 30 Pepsi. In 2011, a Coke cost $4 and a Pepsi cost $2. In 2012, a Coke cost $5. The base year is 2011. If the inflation rate in 2012 was 16 per cent, then what is the Consumer Price Index (CPI) in 2011?
Solve for the elasticity of demand as a function of the market price. Draw this function for P [1/3, 2/3]. Suppose a (small) sales tax is imposed on potatoes. Would the burden of the tax fall mostly on consumers, mostly on producers, approximate..
Describe the 1993 expansion of the EITC. What does theory predict about the impact of this EITC expansion on the labor supply of single women with children? Discuss the predictions. Would you expect a dierence by family size. Why or why not. Expla..
Discuss the strengths and weaknesses of competitiveness in the dominant economics of Asia (that is, China, Japan, India etc.) and the opportunities and threats that the competiveness of these economies pose for the less developed economies of the ..
One of the goals of macroeconomic policy is to reduce the severity of business cycles. Q. If the severity of business cycles were reduced, what would be the effect on each of the four types of unemployment and on the unemployment rate as a whole
For a region, you are given the number of deaths, the number of deathes related to alcohol, the number of deaths related to painkiller opiates and the averge mid-year population. What is the equation to calculate the crude death rate for the region? ..
What do economists mean by the law of one price? Why might the law of one price be violated? What is the value of the exchange rate that satisfies absolute PPP?
What is the share of Household A's income spent on education? Does this household consume more or less education if EF = 20 is provided by the government? What is the share of Household B's income spent on education?
assume that you have been asked estimate the benefits associated with starting an ecotourism project where visitors will be given guided tours of a particularly rich habitat area. 1- what are the main benefits and cost that should be enumerated
Discuss what this actually means and what challenges the United States or any other developed country would face if it attempted to replace Singapore in the top
If the government imposes a quantity tax on the consumption of a good, it means that the consumer has to pay for each unit of the good its price plus the tax.
Part of answering that question is a consideration of whether economic well being for the nation is the same as quality of life for the individual?
Assume that the price elasticity of demand for good. Describe how much consumption changes.
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