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Assume that there are only two inputs (labor and natural resources) producing two goods (movies and gasoline) with no improvement in society's technology over time. Further, assume that natural resources are being rapidly depleted. What would happen to the Production Possibility Frontier over time? How would invention and technological improvement modify?
Alexander studies away from home. While at school, he spends all his income on air travel and economics textbooks. In a diagram with air-travel as the x-axis good, as pair increases while ptext remains unchanged, Alexander's price consumption path..
Determine the firms optimal advertising-to-sales ratio and if the firms revenues are $50,000, what is its profit-maximizing level of advertising?
Assume the rural wage is $1 per day. Urban modern sector employment can be obtained.
In the Macroeconomics book by Stephen Williamson (5th Edition) in the Appendix for Ch. 7-8 Problem 1 the problem asks: Suppose in Solow growth model that there is government spending financed by lump-sum taxes, with total government spending G=gY,..
Illustrate what is the likelihood of a second industrial revolution in underdeveloped countries today.
Illustrtae what is the value of a forward contract in terms of the current stock price, the interest rate, the delivery time.
In a traditional monopoly, all or most sales are in a market are undertaken one company. In a natural monopoly, the cost-technology of an industry where is is most cost efficient to be run by one company and a good example of this would be public ..
Elucidate what it means that the preference relation has a utility function representation,
a. What is the amount of excess reserrves b.This bank can safely expand its loans by what amount c.by expanding its loans by this amount in part (b), its checkable deposits would expand to what amount (if all loans were made to checking account cu..
Refer to the above data. If the product price is $60, at its optimal output, will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all calculations. Refer to the above data. If t..
Suppose if 100$ million in excess reserves are made available to banking system, by how much can the banking system increase the money supply?
Illustrate What would happen if prices were lowered when demand was inelastic
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