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Country A has a population of 1,000, of whom 800 work 8 hours a day to make 128,000 final goods. Country B has a population of 2,000, of whom 1,800 work 6 hours a day to make 270,000 final goods.
a. Calculate each country's productivity and real GDP per person.
b. Which country is better off?
Use the following information for the next 9 questions. You should draw a graph that depicts the situation below and use your picture to answer the questions. Assume that wages and prices are sticky and that we start at a long-run equilibrium. Now as..
Plot the forecasts against the realizations. Are the forecasts good?
Explain the debate on equal rights, especially as related to marriage, for gay men and lesbians continues. Would you classify this as an issue or as a problem.
Mary has two possible career paths. She can become either a biologist or a concert pianist. Mary lives for 2 periods. In the first period she gets the appropriate education for her career. In the second period, she works in the labor market. Suppose ..
“If a central bank decides to accommodate an adverse supply shock, it will intensify the inflationary effects.” Comment on this statement with the help of an AD-AS diagram.
Consider Mary, an hourly worker who currently earns $30,000 per year. If Mary's wage rate is increased by 50%:
The manufacturer of Brand A automobile tires claims that its tire can save 110 gallons of fuel over 55,000 miles of driving, as compared to a popular competitor (brand B). If gasoline costs $4.00 per gallon, how much per mile driven does this tire sa..
Using benefit-cost ratio analysis, determine which one of the three mutually exclusive alternatives should be selected. Each alternative has a 6-year useful life. Assume a 15% MARR first cost a $560 b $340 c $120 uniform annual benefit 140 100 40 sal..
When an incumbent maintains a price below the monopoly price in order to prevent entry. The act of charging a low price initially upon entering a market to gain market share.
A consumer spends more time searching for a good when her reservation price is:
Using a graph explain the welfare impact of export subsidy on domestic consumers, producers, government, and national welfare in a) a small country b) a large country
plot the total, average, and marginal functions for both revenue and cost. [Note: Use a two-part graph similar to Figure 2.1 that places the total function in the upper part and the average and marginal functions in the lower half. What is true of th..
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