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An economist working for a private information service argues that it would be better for the US economy if the USDA stopped providing public information on crop production levels and projected prices. He argues that the use of public tax dollars is inappropriate and does not serve a substantial public good or increase efficiency. Do you agree or disagree with this assessment? What would you project would be the outcome if the USDA stopped providing this information?
A new material handling equipment is being economically evaluated separately by engineers. the first cost is 107000, and salvage value of 35000. Both engineers estimated that the revenues from the equipment will generate 27000 per year. use the PW to..
In 2010, and 2011, the government of Greece risked defaulting on its debt due to a severe budget crisis. Using bond market graphs as shown in class show the effect on the risk premium between U.S. Treasury debt and comparable maturity Greek debt. Ple..
When companies expand into the international arena, they do so either because their home market has matured or because they see real opportunities in the foreign market. Discuss which kinds of international strategies are most appropriate for compani..
How can the three basic assumptions of human behavior ( people are rational, people respond to incenititives and optimal decisions are made on the margin) be called the backbone of supply and demand?
I understand that inflation has an impact on the foreign direct investment. But can the opposite be true? The amount of foreign direct investment has an impact on the inflation of the country that receives the investment?
Suppose that Colin’s preferences for goods X and Y can be represented by the utility function U(x,y)=min{x,y}, where x (respectively, y) is the amount of X (respectively, Y) that he consumes. Give a real world example for such preferences and for goo..
Consider the owners of a small lawn-mowing service. They can use one of two methods to mow lawns. Method 1 is to purchase a tractor that costs $200 a year to own and then spend $1 (for labor and gas) for every acre of grass cut. Method 2 is to spend ..
In what conditions will an increase in the price of a product lead to a reduction in total spending for that production.
The government is considering increasing the full Social Security retirement age to 75. If this occurs, how do you expect this change would affect how much on-the-job training that workers will want to obtain over their working life?
A city is spending $20 million on a new sewage system. The expected life of the system is 40 years, and it will have no market value at the end of it life. Operating and maintenance expenses for the system are projected to average $0.6 million per ye..
Suppose farmers can use their land to grown either wheat or corn. The law of supply predicts that an increase in the market price of wheat will cause:
Mitchell's income is $150, the price of X is $4, and the price of Y is $2. Given these prices and income, Mitchell buys 20 units of X and 35 units of Y. Call this combination of X and Y bundle J. At bundle J, Mitchell's MRS is 1. Given these prices a..
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