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Suppose that the household’s preferences are represented by the utility function U(C0, C1)= 100C0^ 0.5 C1^0.25. If the real interest rate is 5 percent, what is the value of the MRS of this household when it has maximized its two-period welfare?
Estimate aggregate consumer and producer surplus before quota. Estimate new consumer and producer surplus after quota.
How do the Minsky and Austrian explanations for the causes of the Great Recession differ? Explain how the proponents of government stimulus believe that it will affect aggregate demand and employment (be specific!). How might government stimulus poss..
(a) How many Frisbees are being sold in equilibrium? (b) How many (identical) firms are initially producing Frisbees?
Discuss the opportunity costs of natural disasters. Calculate (in $$$) your opportunity costs of natural disaster.
if you deposit $1000 now, $3000 four years from now follows by five quartely deposite decreasing by $500 per quarter at an interest rate of 12% per years compounded quartely. how much will you have in your account 10 years from now?
Consider the timing: The incumbent chooses whether to invest; then the entrant observes the incumbents investment decision; then the firms compete in prices. Show that in subgame perfect equilibrium (SPNE) the incumbent does not invest.
In 2013, there were numerous global conflicts: civil war in Syria, unrest in Brazil, and continued turmoil in Iraq and Afghanistan. Though many of these conflicts are far from U.S. borders, how might they play out in the American economy (i.e., in la..
What is the unregulated competitive equilibrium. What is the unregulated monopoly equilibrium.
Assuming that there are no direct expenditure offsets to fiscal policy, how much should the government increase taxes? Explain by giving appropriate reasons.
Mei issues purchase order to June for goods which costs $ 25,000. June agrees to provide the same but she doesn't sign the purchase order. Mei can file a suit for the breach of contract. A description that gives rise to an express warranty under whic..
Consider the following simple model with investment and government spending exogenous:
Esther price of maple syrup increased by $6 per pint - $7 per pint production increase from 250 to 300 pints what is the elasticity of supply over this range is Supply elastic or inelastic over this range
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