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1. Suppose the ABC Corporation adopts a policy prohibiting its top-level executives, whose compensation packages include awards of ABC stock each year, from selling such stock until two years after they leave ABC. Use economic theory to analyze the incentive effects of this prohibition.
2. An economic study has found that men who are judged to be "ugly" have earnings that are 9% less than their "average-looking" peers with the same age, education, and occupation; those who are considered "handsome" make 5% more than average. Is this evidence of labor-market discrimination? Discuss fully.
When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.
Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.
You're the absolute czar and head of union of 1,000 plumbers in Austin, Texas. You've the absolute power to set the wage at which the plumbers will work. You wished to achieve full employment at highest possible wage; (b) you wished to maximize the..
Discuss how a change in price affects total expenditure by filling in each cell with resulting change in total expenditure.
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
Question based on Derive and compare demand curve, Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?
If you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking? Is the project profitable at an interest rate of 12 per cent? Provide numerical calculations in support of your answers.
How much does the gross price increase in each market
The public tends to view trade deficits with alarm while macoreconomics claims that trade deficits can actually be usefull for the economy. Discuss the macroeconomists position on trade defilicts
Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.
For a perfectly competitive firm the price is $2 per unit. At this price the firm is producing and selling 10,000 units. It costs $1.50 to produce the last unit. Should the firm produce more? Less? Why?
What is Bill's opportunity cost of producing one hat, In which of the two activities does Mary have a comparative advantage.
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