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Assume that you just saw the third quarterly economic statistics of this year for the U.S. economy. The data indicates that the economy has added 200,000 new jobs and the unemployment rate had fallen to 8%. Despite this good news, however, the report reveals that more than 500,000 individuals have given up the hope of employment. Some critics point to this number and argue that the decline in the unemployment rate is not real. What term do economists use to describe those who stop looking for a job? Evaluate the critics’ argument on the issue.
A monopolist operates in an industry where the demand curve is given by Q=1000-2p. The monopolist's constant marginal cost is 8 dollars. What is the monopolist's profit maximizing price? How much does the monopolist produce? What are its profits?
Assuming the ABC bank has excess reserves of %5,000, it could prudently expand its loans by a maximum
Two hospitals want to merge. The price elasticity of demand is -0.20, and each clinic has fixed costs of $100,000. One clinic has a volume of 9,200, marginal costs of $70, and a market share of 3 percent. What are the total costs, revenues, and profi..
What type of leader are you aspiring to be? Please note one person that you would like to model your leadership behavior after. Be sure to note who the person is and why would you want to model their behavior. Finally, note what steps you could take ..
What explains that marginal cost increases as production of a product increases?inreasing cost law decreasing average cost property
You own a consulting firm and are approached by a potential client with the following problem: Consider two firms—one that produces electricity, the other is a laundry/dry cleaning business. Identify and explain the issues involved in this situation..
What is the intertemporal budget constraint in this model? Explain why some terms have the slope of the budget constraint as a divisor? What does the Ricardian equivalence theorem say? Assuming government borrow-ing is substituted for present-period ..
One tractor to be considered is an International Harvestor. It has an initial cost of $38,000 and an annual maintenance of 100 with a salvage value of $17,000. It's useful life in years is 25. What is the value/cost closest to the annual worth of the..
Suppose the Corn producers throughout the Midwestern states experience unusually poor weather and so produce a smaller than normal harvest. Explain using a diagram how this harvest will affect Canadian Corn farmers?
Let's take a look at all the posts above on the definition of GDP. Those definitions of GDP usually assume constant prices even though there is no clear reference to prices in the definition. That is why economists usually like to differentiate betwe..
Imagine that a $10,000 ten-year bond was issued at an interest rate of 6%. You are thinking about buying this bond one year before the end of the ten years, but interest rates are now 9%. a. Given the change in interest rates, would you expect to pay..
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