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Several years ago, American Economic Review published a paper in which the author claimed giving gifts at Christmas was "inefficient." Instead of giving gifts, which the receiver might not want, it would be better to give money so that the recipient would then use the money to satisfy his or her own preferences. Would this always be the situation, or can one make a case for giving actual gifts besides money? Explain
You have been appointed economic advisor to Exam land. The mpc is 0.6; investment is $1000; government spending is $8000; consumption is $10000;
Use the inverse matrix method to solve for equilibrium level of national income and the equlibrium rate of interest in this economy.
Some manufacturing companies are moving out of the country in search of cheap labor and the ones at home are not doing as good and some big ones like auto are trying to cope well after coming out of bankruptcy.
Explain the relationship between elasticity of demand and total revenue for the following ranges along the demand curve, using the attached Graphs for Elasticity of Demand, Total Revenue.
a pollutoin control agency is considering the following rgulatory policies: (i) taxing the use of one input that increases pollution. (other inputs affect pollution too, both increasing and decreasing it) (ii) taxing the final goods that firms pro..
Assume that a hypothetical economy with an MPC of 0.75 is experiencing a severe recession. 1. By how much would government spending have to rise to shift the aggregate demand curve rightward by $50 billion 2. How large a tax cut would be needed to ac..
Our customers who choose to keep a car for an extra day are currently paying the same base daily rate. Do you see any potential in exploring alternative schemes? If so, what changes should we implement-shall we change the price for extra days? Wha..
Differentiate the expenditure versus income approach to GDP and discuss why are the results the same? What are some of the drawbacks of using GDP while doing international comparisons among countries?
Determine how much tax revenue is generated by the tax and what the tax incidence on tax is on consumers and producers. need to indicate new price points and quantities.
Assume that you are leaving a message in a time capsule to be opened 100 years from now. Formulate a message you leave regarding the economic times of your lifetime and what could have been done to make our economy better.
What is the basic determinant of (a) the strength of the transactions demand for money (the location of the transactions demand for money curve) and (B) the amount of money demanded for assets, given a particular asset demand for money curve
The equilibrium price for physiotherapy visits is $30 and the quantity utilized is 150 visits as a result of the demand and supply conditions in this diagram.
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