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The government introduces a new regulation which raises minimum wages of a bakery’s workers. Assuming that the market for bakeries is perfectly competitive, explain the effect of the increased minimum wage on an individual bakery average fixed cost, the average variable cost and the profit maximising quantity.
What are the major categories of “investment” expenditure in the GDP accounts? What are “transfer” expenditures of governments? Why aren’t they included as part of “government spending” in calculating GDP? Why aren’t “intermediate” goods purchases by..
Sets out the aggregate demand and aggregate supply schedules in Japan. Potential GDP is 600 trillion yen. What is the short-run macroeconomic equilibrium.
Given the current economic climate nationwide and locally, the state of Delmarva would like to impose a higher tax on out-of-state companies doing business in the state than it imposes on in-state companies. Is this law legal, or is it a violation of..
Explain how total emissions can rise even though emissions per dollar of GDP substantially decline. Which of the two is more relevant for climate change? Why?
Suppose GDP is $15 trillion, taxes are $3 trillion, private saving is $2 trillion, and public saving is -$0.5 trillion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment. Explain your answer..
If LFC sells chicken and biscuits as a meal deal, what price would be set for the meal deal which comprising both an order of chicken and an order of biscuits
Line, color, hue, balance, form and perspective were some of the key concepts covered in this week’s tutorial. Use the example of a painting by Peter Paul Rubens and discuss how one or more of this week’s key concepts are featured in the painting. Id..
Assume that the resource and output markets are both competitive, and that it is possible to hire fractional units of the resource. Explain how many units of the resource will a profit-maximizing firm hire.
Two clinics want to merge. The price elasticity of demand is -0.20, and each clinic has fixed costs of $60,000. One clinic has a volume of 7,200, marginal costs of $60, and a market share of 2 percent. The other clinic has a volume of 10,800, margina..
If one country has per capita income of $15, 000 and its economic growth rate is 5 percent per year, what will its per capita income be in 10 years? About how many years will it take to catch up to a country where the per capita income is $30, 000 pe..
Two partners own together a small landscaping business in North Carolina, called Summer Lawn Care. They have been specializing in summer grass seeding, installation, and maintenance. Recently, the partners acquired special technology and know-how for..
Explain how the short-run Phillips curve, the long-run Phillips curve, the short-run aggregate supply curve, the long-run aggregate supply curve, and the natural rate hypothesis are all related.
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