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Ethanol is a motor fuel manufactured from corn, barley or wheat. Suppose the federal government decides to heavily subsidize ethanol production. Explain the effect of the subsidy on:
A. Corn.
B. Gasoline.
C. Automobiles.
D. Soybeans.
Oil prices have fallen recently due to falling global demand and rising global supply. What are some potential ways to combat rising fuel prices in the future (demand side and supply side)?
Doctors often charge patients different amounts depending on their judgment concerning their ability to pay. what implication does this have for exchange efficiency?
A subsidy is a negative tax in which the government gives people money instead of taking it from them. If the government applied a ?$1.951.95 specific subsidy instead of a specific tax in the figure to the? right, what would happen to the equilibrium..
A young graduate engineer wants to know the equivalent future worth if she invests a uniform series amount of $5, 500 each year for the next 35 years in an individual retirement account (IRA). Assuming a 796 per year rate of return, she wants to calc..
Which of the graphs above represents the situation described for all cases below (a to e): e.g. Suppose the price of lumber falls dramatically. Which panel best describes how this will affect the market for houses?
Market Effects of a Tax. Consider the market for fish. Use a demand and supply graph to predict the effect of a tax paid by fish producers of $1 per pound of fish. Use a demand and supply graph to predict the market effect of the tax.
What is the nature and strength (weak, medium, strong) of each of the five competitive forces (substitute products, buyers, new entrants, suppliers, and the rivalry among sellers in the industry.
The Wall Street Journal recession probability tracker shows the likelihood that the US will enter a recession in the coming 12 month between 0 to 75 percent, the widest range since the Great Recession, despite the average likelihood trending downward..
Referencing the Relations for Discrete Cash Flows with End of Period Compounding posted as a guide, and given: a geometric gradient value, g = 5%, an initial uniform series value A1 = $5,000, an interest rate, J=7% per year, and a time period, n=5 ye..
Green et al.? (2005) estimate that the demand elasticity is minus−0.47 and the? long-run supply elasticity is 12.0 for almonds. The corresponding elasticities are minus−0.68 and 0.73 for cotton and minus−0.26 and 0.64 for processing tomatoes. if the ..
Draw graphs with quantities of pepperoni pizza on the horizontal axis and quantities of anchovy pizza on the vertical axis to illustrate the following situations. In each case draw two different indifference curves and make a little arrow pointing in..
In 2011, the government of Greece ran into severe financial difficulties. For years, the Greek government had spent much more than it had received in tax revenue, financing the substantial budget deficits by borrowing.
Assume 1990 to be the base year. If by the end of 2004 a country's export price index rose from 100 to 130 while its import price index rose from 100 to 115, its terms of trade would equal 113. Why?
He goes to his pal "Hammerhead" the loan shark who loans him $10,000 for a year. Illustrate what is true effective interest rate per year.
U.S. is currently suffering from underemployment and excessive current account deficit. What measures can U.S. take to move away from its present situation towards internal and external balance? Consider rules of Bretton Woods and policy tools.
Describe the purpose of ecumenical services and interfaith initiatives. What importance, if any, does dialogue between the various faith traditions have? Find one example of either an ecumenical service or interfaith initiative in your town or city a..
The original cost of a certain asset is $1,592. Annual maintenance costs are projected to be $464, with periodic maintenance costs of 983 every 10 years, over an indefinite period of time. The interest rate is 2%. What is the capitalized cost?
Do not try to explain people's tastes, but they do try to explain what happens when tastes change.
Recessions seem to show up every so often and create economic hardship. One might think that macroeconomic policymakers could tame the business cycle and implement policies that would end recessions. Are recessions a necessary fact of macroeconomic l..
You are an efficiency expert hired by a manufacturing firm that uses K and E as inputs. The production function for a competitive firm is Q = K1/2 E1/2. The firm sells its output at a price of $32, and can hire labor at a wage of $12.44 per hour. In ..
What strategies are proposed in the Babson College competition to obtain control over market price? Given the competitive nature of consumer products industry, why do you believe firms spend millions on Super Bowl and other primetime ads? How would a..
Suppose the market for lobsters is perfectly competitive. All producers have identical costs curves and the industry is currently in long run equilibrium with each producer producing at its minimum long run average total cost of $4/pound. How will in..
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