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1. "Unemployment is no longer a social problem because unemployed workers receive unemployment benefits and other benefits that make up for most of their lost wages." Comment.
2. Why is it so difficult to define full employment? What unemployment rate should the government be shooting for today?
Do you see a link between deficits and real interest rates? In what period does the relationship seem clearest? Do your answers change when the ten-year government bond interest rate is used instead of the three-month rate?
What impact will the substitution effect and income effect have on the quantity demanded of coffee if coffee is an inferior good? Explain.
Suppose the demand curve for a monopolist is Qd=500-P, and the marginal revenue function is MR=500-2Q. The monopolist has a constant marginal and average total cost of $50 per unit. a) Find the monopolist's profit-maximizing output and price.
a. What is the real value of output (Q) Now assume that the Fed increases the money supply by 10 percent and velocity remains unchanged. b. If the price level remains constant, by how much will real output increase.
What does behavioral economics have to say about each of the following statements?
Suppose a consumer's income is M= $1,200 per month, all of which he spends on some combination of rent and restaurant meals. If restaurant meals cost $12 each and if the monthly rent for an apartment is $3 per square foot.
EA finds out that two different types of people fly to Honolulu. Type A consists of business people with a demand of QA = 260 - 0.4P. Type B consists of students whose total demand is QB = 240 - 0.6P. Because the students are easy to spot.
hypothesis, critical values, or calculations you used to get your answer to receive full credit. You will have to decide which variable is the dependent variable and which variable is the independent variable Use 3 decimals.
What rate of return per month will an engineer make over 2 and a half year project period if he invested $150,000 to produce portable 12volt air compressors. His estimated monthly costs are $27,000 with income $33,000 per month.
A large processing plant is trying to decide between two air scrubbing units. The unit is required by clean air regulations and will be replaced by an identical unit of itself at the end of its useful life into the foreseeable future. Costs and be..
A small company heats its building and spends $8,000 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 10% per year starting one year from now (i.e., the first cash flow is $8,800 at EOY one).
If the CPI was 110 last year and is 121 this year, what is this year's rate of inflation In contrast, suppose that the CPI was 110 last year and is 108 this year. What is this year's rate of inflation What term do economists use to describe this s..
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