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If the total population of the United States is 300 million and there are 30 million people unemployed and 120 million employed, what is the unemployment rate?
The next two questions refer to the following problem. A risk-neutral worker can provide high effort (at personal cost $14) or low effort (at zero cost). A high effort worker contributes $X to the company’s revenues, a low effort worker contributes $..
ACME manufacturing has the linear short run production function Q = 13K + 2L + 41M, where K is capital, L is labor and M is raw materials. Its stock of capital and raw materials are fixed at 5 units each; input prices were $8 for capital and $16 for ..
A firm estimates its cubic production function of the form Q = AL3 + BL2 and obtains the following estimation results: a. What are the estimated total, average, and marginal product functions?
McNair's Wheel of Retailing is a widely used model to describe the way in which retail outlets develop over time. In what ways does this model reflect reality? Can you think of situations where retailers do not follow this model?
Steve Slacker is age 25, has an MBA degree, but is not working. Instead he is living at a major ski area, using the $2,000 per week he gets from his wealthy family. Construct a single income-leisure choice graph to show Steve’s situation before and a..
The US government should be the catalyst for innovations in intermodal transportation. Industry, in a free market economy,
If the discount rate were lowered to 7.75?%, half the initial? rate, what would be the value of the? perpetuity?
Suppose your mayor has asked you to come up with an excise tax that will be as efficient as possible. Choose a good to be taxed and explain why it will cause a low deadweight loss.
Assume re is a multiplier effect and that total crowding-out effect is $6 billion. An increase in government purchases of $10 billion will shift aggregate demand to left or right by how much.
Suppose you have three indivisible assets, A, B and C with internal rates of return 2%, 5% and 10% respectively and initial costs of $1, $4, $5. Suppose you have $8.0 at 1% and can borrow at 8%. What is the incremental cost of funds on asset B?
The root cause of most mass starvation is a lack of food production. Most mass starvation have been intentional. Mass starvation is less likely in democracies. Greater political competition is associated with higher levels of food distribution.
Plot indifferences curves for U = 0.5, U = 1, and U = 1.5. Based on your plot, would an individual with these preferences view X and Y as (imperfect) substitutes or complements? Using the Lagrangian method, find the optimal quantities of X and Y cons..
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