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1. Which point A-E, does the person start off at before the stimulus payment of the institution of the child tax credit?
2. Which point does each program move the person to? Answer for each program independently
3. Which pattern of consumption will the person choose given the Permanent Income Hypothesis? Which point on the graph matches this pattern of consumption? Explain
4. If the goal of the 2 programs is to increase the current demand for goods and services, Aggregate Demand in Macro-speak, to prevent a virus related recession, which program is better? Explain
Assume two firms, A and B, serve a market with demand D(p) = 100 minus (p). Also assume that (i) firms compete for market share (quantity competition) and (ii) firm A has cost function cA(Q) = 2Q and firm B has cost function cB(Q) = Q. Describe this ..
Some researchers have found that when Germans work for a U.S. MNC, they become even more German, and when Americans work for a German MNC
In your opinion, discuss when it makes sense to forego purchasing car insurance (assuming the state did not require it). In your answer, use moral hazard and risk aversion to describe your decision.
Three major causes of inequality of income. Describe what the primary factors are that lead to poverty. We have learned there are two solutions to reduce poverty. We could expand welfare and redistribution programs, and make taxes more progressive. C..
The market demand is given by P=260-0.002*Q. The monopolist's costs are described by TC=8,000,000+2Q. Calculate the profit-maximizing quantity.
Can you relate the Classical and/or Keynesian macroeconomic models to assumptions about economic behaviors and to economic policies being implemented in the U.S. economy today?
We can modify the inter-period allocation model to deal with the issue of intergenerational allocation of resources. Suppose a generation is thirty-five years, and we are concerned with only two generations. Draw a demand and supply graph showing the..
A cartel is branch of an oligopoly. There are still a handful of large firms and many smaller firms. For instance, the diamond industry and the petroleum
Please consider the effect of prices on everything doubling. Suppose all prices doubled while you slept. A soft drink that sold for a dollar now sells for two dollars; a car that sold for $20,000 now sells for $40,000. The price of labor doubled as w..
Do you think the industry environment is significantly dissimilar today.
Compare and contrast pure discount bonds with coupon bonds and provide at least one example of such government or corporate bonds that can be bought and sold by investors. Describe the way interest rates are determined for these bonds by using the ap..
Explain what is meant by stragetic planning. How does the SWOT analysis and the "mission statemaent" fit in the strategic plan?
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