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Suppose that you were a dictator. Describe a law that you could decree that would eliminate or reduce frictional unemployment but would likely reduce productivity, and explain why. Describe a law you could decree that would increase frictional unemployment but might increase productivity, and explain why.
Economists tend to favor revealed preference methods of valuing non-marketed goods like environmental quality and natural resources. What are two reasons why revealed preference methods may lead to poor estimates of these values?
BP Oil is in the process of replacing sections od its Prudhoe Bay, Alaska oil transit pipeline. Illustrate what required return does the project become financially unacceptable.
Bertie’s Boards has 2 factories in Malibu and Denver that were originally dedicated solely to skateboard production. As it turns out though, each of the factories could be used to produce both skateboards and surfboards. Draw the overall production p..
If Cameron is a risk neutral inventor, which option will be selected? d. How would your answer change if Cameron is a risk adverse investor?
The national economy has been in a slump for several years, but recent signs of strength in much of the economy have led many forecasters to conclude that an expansion could finally be in the offing.
Supply is given by the equation P=10+0.05Q. Demand is given by the equation P=600-0.05Q. Calculate the price and quantity at which the price elasticity of demand is equal to -1. How might you describe that point?
Inducing the worker to exert effort A worker can exert two effort levels, good or bad which induce a production error with probability 1/4 and 3/4 respectively. Calculate the optimal contract and the effort that the principal desires under conditions..
There are basically four types of market structure under which a business could operate. What are these market structures? Assume that you are the only producer of a product and have a patent that prevents market entry, what market structure do you b..
Elucidate why we still say that raising cattle is land intensive compared with farming wheat or why not.
A firm has the production function y = x1^1/2 * x2. In the short run it must use exactly 15 units of factor 2. The price of factor 1 is $75 per unit and the price of factor 2 is $2 per unit. Derive the firm’s short-run marginal cost function.
Please give an example of research question that employ probity or legit model as an analysis method! Mention the dependent variable (Y) and the independent variables (X). What is your expectation on the sign of each X's coefficient?
Consider the economy of Hicksonia. The money demand function in Hicksonia is (M/P)^d = Y - 200r. The money supply M is 3000 and the price level P is 3. Graph the LM curve for r ranging from 0 to 8. Find the equilibrium interest rate r and the equilib..
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