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How does a price ceiling undermine the rationing function of market-determined prices? How could rationing coupons insure that consumers with the highest values get the limited amount of a good supplied when government price ceilings create shortages?
Describe the possible impacts of government borrowing upon the financial system and the economy. What are the principal sources of revenue for state and local governments today Where do they spend the bulk of their incoming funds
The average price/gallon of gass in July over the past 4 years was $2.74, $3.65, $3.45, and $3.63. Use linear regression to predict the price of gas the following year? How would I set up this problem? Do I use years as my x variable?
Explain why user cost, or scarcity rent, arises in the intertemporal allocation of a depletable resource such as minerals, and some types of energy and aquifer water resources.
compute the unregulated market level of output and price as well as the socially efficient level. By how much does the market output exceed the socially efficient output, and by how much is the market price below the socially efficient price
Bargaining outcomes in a market-related situation are in general indeterminate and not obvious to the parties in the negotiation. Develop a bargaining situation from which you would conclude that access to market-related information
Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car deal..
Now add an entry stage after firm 1 chooses q1. In this stage, firm 2 decides whether or not to enter. If it enters then it must sink cost K2, after which it is allowed to choose q2. Compute the threshold value of K2 above which firm 1 prefers to ..
Illustrate what are the pros and cons of a company that competes in a global environment. How do you think this has affected the U. S. economy and the global economy.
Elucidate why the Fed must normally add reserves to the banking system via open market operations on most days in order to maintain its interest rate target in the Fed Funds market.
Assume x and y are the only two goods a person consumes. If after a rise in p x , the quantity demanded of y decreases, one could say
American Mining Company is interested in obtaining quick estimates of the supply and demand curves for coal.
Beauty lotion is a skin-moisturizing product that contantains rich oils, blended especialy for overly dry or neglected skin. Product is sold in five once bottles by a wide range of retail outlets.
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