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Why is it important to test a theory? Why not simply accept a theory if it sounds right?
Suppose that inverse demand is given by p(Q) = a-bQ, where Q is total quantity supplied in the market. There are two firms in the market, each with a cost function of c(q) = cq, now assume that the first firm moves before the second firm. Compare the..
A new car dealer advertises financing at 0% interest over 4 years with monthly payments or a $3000 rebate if you pay cash.
Discuss how we can minimize possible confounding effects in an evaluation. Make sure to discuss the two major techniques.
"The possibility for gains of trade is due to the fact that different countries face different resources endowments
There are two types of electric pencil-sharpener producers. “High-quality” manufacturers produce very good sharpeners that consumers value at $14. “Low-quality” manufacturers produce less good ones that are valued at $8. Suppose that the sale of low-..
Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 1000 Japanese yen, but finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?
A local paintball business receives total revenue of $8,000 a month when it charges $10 per person, and $9,600 in total revenue when it charges $6 per person.
Due to a technological boom and rapid expansion of the economy, the Federal Reserve Bank is pursuing a contractionary monetary policy
There are d democrats and r republicans voting in the US Presidential election. Each person decides whether to vote or not vote. The voters get a payoff of 2,1,0 if their preferred candidate wins, ties, or loses (respectively). Voters that vote incur..
GDP calculations do not directly include the economic costs of environmental damage-for example
What components of aggregate demand were affected and what was the impact on real output? What were the policy options?
How is young Beowulf as thane to Hrothgar different from Wiglaf as thane to King Beowulf?
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