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Colin and Isabelle both have a weekly dessert budget of $20. The price of an ice cream cone is $2.50, and the price of a candy bar is $1.25. Using a Consumer Choice Theory diagram (budget line & indifference curves), show how it is possible that Colin has a stronger preference for candy bars than Isabelle, but that the MRS for both consumers is the same at their best choice.
A study noted that they charged a price for local telephone services that was roughly one-half of its cost of providing the services.
It is observed that in an area with a lot of illegal immigration, the average wage of native born workers actually increased. Explain how this could have happened, using economic logic. Also, judge whether this is good or bad for the local economy.
Economists tend to favor revealed preference methods of valuing non-marketed goods like environmental quality and natural resources. What are two reasons why revealed preference methods may lead to poor estimates of these values?
Consumption in year three is $200, investment in year three is $100, government spending in year three is $150, exports in year three are $100, imports in year three are $150. Prices for everything in year one are $20, in year two prices for everythi..
Describe the impact of a payroll tax on wages and employment in a competitive industry. Why is part of the tax shifted to workers? What is the deadweight loss of the payroll tax?
How has the median income of women compared to men changed since 1980? What do you think is the cause? Women’s income as a fraction of men’s income has fallen because men are still the majority of workers in high-paying jobs, such as management, cons..
Utilities which operate nuclear power plants are required to place funds into a "Nuclear Decommissioning Fund" in order to be sure that adequate funds are available to decommission the plant at the end of its useful life. A certain utility requires $..
A company would want to make a direct investment in countries where the company’s home currency has higher purchasing power because the company should be able to:
Elucidate how can you derive an equation describing labor demand in this economy as a function of the real wage also capital stock.
In 2010, The Fed reduce the Discount rate by eleven times, to 1.50%, the reason for this action was to:
Based on the current events in our economy, please keep this in mind. When interest rates are held more or less at a constant rate and price risk remains stable, financial leverage does not greatly impact changes is stock return at the market level. ..
The long-run average change in real GDP is known as. Measuring the intensity of the business cycle requires. According to monetary theories of the business cycle, fluctuations are
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