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Explain the main differences between the three main nominal anchor choices presented in Chapter 3: i) Exchange Rate Target; ii) Money supply target; and iii) Inflation target plus interest rate policy.
The monopolist from the previous problem now faces a specific tax of 20, τ = 20. What are the optimal quantity and price given the tax? Calculate the welfare loss from the tax.
The owner/manager of an athletic shoe store has revenue of $260,000 per year and labor, interest, inventory, and miscellaneous expenses of $200,000. The owner also owns the building the store is located in. What and how much are the store owner’s imp..
Betty can make either “12 bottles of wine and 0 boxes of chocolates” or “0 bottles of wine and 96 boxes of chocolates” or a combination of wine and chocolates. Find the equilibrium price (P), quantity (Q), and revenue in a market characterized by the..
GM announced that it will close its Oshawa truck plant in 2009 and a Windsor transmission plant in 2010. Ford also plans a 10 percent cut in white-collar, salaried positions. In total, over 4000 direct jobs will be lost. What is the relationship betw..
q1. were past societies in human history more ecological than our society today? what is the most ecological society
Describe what observations and decisions might be made based on comparative labor costs. What countries, based on labor costs alone, might seem best to lower labor costs.
Assume that the short-run cost and demand data given in the table above confront a monopolistic competitor selling a given product and engaged in a given amount of product promotion. Refer to the above table and information. If the firm sells 3 units..
“Dams ‘R’ Us” operates a major hydropower dam on the Klamath River in Oregon. In the event of dam failure, there would be major damages to local communities. The company can reduce the probability of failure through proper maintenance of the facility..
The Fair Labor Standards Act, enacted in 1938, requires that firms pay "double time", which is 200% of the regular wage rate, for overtime work. This question asks you to consider some of the incentive effects of overtime pay. When faced with the bud..
Mr. and Mrs. Cally are in the process of buying a home for $240,000 and are considering the following home mortgage financing options: What is the expected home's value in 5 years? What is the outstanding loan balance in 5 years for option 1: ? for o..
What is the primary reason that economists view monopolies as a problem? Is this different than you would have expected? What methods are available to mitigate the impact of monopolies? Does being a monopolist guarantee a profit for the firm? Can you..
Suppose that in the hypothetical country of Sore, coffee mugs are distributed based on government policy. This distribution rule gives the residents of Caffistan an incentive to spend time. People in the U.S. state of Iowa eat both corn and potatoes...
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