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Felix Jones, a recent engineering graduate, expects a starting salary of $35,000 per year. His future employer has averaged 5% per year in salary increases for the last several years. If inflation is estimated to be 4% per year for the next 3 years, how much, in year-1 dollars, will Felix be earning each year? What is the differential inflation rate in Felix's salary?
Suppose that inflation is 2 percent, the federal funds rate is 4 percent, and real GDP is 2 percent above potential GDP. According to the Taylor rule, in what direction and by how much should the Fed change the real federal funds rate?
Suppose that the government decides to impose a tax on the producers of potato chips. How will the tax affect the potato chips prices and the quantities sold? Explain using demand and supply curves.
Henry the Geek likes books (B) and computer games (C). We have observed that he preferred the bundle (12,8) over (9,15), bundle (20,6) over (15,10), and bundle (4,16) over (13,9). Assume that his preferences satisfy the properties of completeness, tr..
In class we saw that when Deferred Acceptance is used, the proposing side has a weakly dominant strategy of being truthful. Use this result to show that serial dictatorship has the same properties.
During a one year period, the inflation rate was 5%. During the same year, you invested in Treasury bills and earned 7% return. You are in a 25% tax bracket.
Smith likes cashews better than almonds and likes almond better than walnuts. He likes pecans equally as macadamia nuts and prefers macadamia nuts to almonds. Pecans or walnuts?
Look over Maslow's Hierarchy of Needs and try to determine where you are right now on the hierarchy. What needs of yours are not being met? How could a company go about meeting those needs and thus motivate you to work more effectively?
Why is the equality of marginal revenue and marginal cost essential for profit maximization in all market structures? Explain why price can be substituted for marginal revenue in the MR=MC rule when an industry is purely competitive
part a1. economics is the study of the principles governing the allocation of scarce means among competing ends when
At Dulles airport, only taxis and privately owned cars are allowed to use the highway between downtown and the airport. That taxi market is competitive. There is a special lane for taxis so they are always able to travel at 55mph. Suppose P,E and G c..
Compared to their levels in 2003, the poverty line has ________ and the minimum hourly wage has ________.
If producing a good generates pollution (a negative externality), from a social perspective ...
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