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Suppose that four 85-octane gasoline pumps and three 89-octane gasoline pumps provide as much profit at a local convinience store in five days as three 85-octane pumps and five 89-octane pumps provide in four days. Which gasoline pump produces greater profit for the store?
China and India are two countries that are leading the way in reducing global warming. A market is a logical extension of a decentralized system in which entitlements are assigned and can be traded.. Social efficiency is gained when collective well-..
The commercial banking industry in Canada is less competitive than the commercial banking industry in the united states
Does this make economic sense? Explain the rationale behind equal prices for unequal distances in air travel using supply, demand, and cost curves.
Assume the world has only the U.S. and Germany, and that trade between them is balanced such that neither runs a trade deficit nor surplus. If exchange rates now change such that the U.S. dollar becomes more expensive for Germans to buy (and all else..
Sally gets pleasure from good Y but gets no pleasure from good X. Tim gets no pleasure from good Y, but gets pleasure from good X. Draw indifference curves in an Edgeworth Box (place Sally's origin at the lower left and place good X on the horizontal..
Suppose Mike and Johnson produce two products- hamburgers and T-shirts. Mike produces 10 hamburgers or 3 T-shirts a day and Johnson produces 7 hamburgers or 4 T-shirts. Assuming they can devote time in making either hamburgers or T-shirts. Draw the p..
What is a “natural monopoly”? Why is it the case that the market system cannot deliver a sustainable competitive equilibrium in the case of a “natural monopoly”. What, in your view is likely to be the most attractive option for how the government sho..
was low at a point and time in past human capital is also relevant never ever use selection bias! Equipment is it investment or is it technological change.
During the mortgage crisis the destabilizing effects of defaulting mortgages quickly spread throughout the financial system because those mortgages were involved in widespread securitization. What is securitization?
How do such policies impact product price and industry output and employment? Are these kinds of policies easy to implement in practice? How has globalization of production affected our ability to control pollution?
Suppose that over the past 50 years, the nominal and real deficit of a country grew from $100 billion to $200 billion. Suppose that, over the same time, real GDP grew from $100 billion to $300 billion. Using __________, we can give an accurate pictur..
Assume that the society decided to reduce consumption also increase investment. Explain how would this change effect economic growth.
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