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Suppose that Sally has 112 hours of time per week to allocate between market work and household time, earns a wage of $12 per hour if she works, and receives $30 per week in non-labor income. Graph Sally's budget constraint. If Sally's market wage were $15 per hour, how would that affect Sally's budget constraint? Show graphically.
A small open economy with a floating exchange rate is in recession with balanced trade. If policymakers want to reach full employment while maintaining balanced trade, what combination of monetary and fiscal policy should they choose?
In Savannah, Georgia, the retail gasoline market consists of 8 firms. Firm 1 has 30% of the market, Firms 2 and 3 have 20% each and the remaining firms have 6% each. What is the four-firm market concentration ratio for this industry? Show your calcul..
Bob’s Whole Catfish is a southern Alabama farm that operates in the perfectly competitive catfish farming industry. Bob’s short-run total cost curve is STC(Q)=400+2Q+0.5Q2 where Q is the number of catfish harvest per month. All of the fixed costs are..
how many standard errors it is away from zero. If it is not very far from zero n we might ignore it; if it is far away from zero n we might consider it important. But how far is ‘far'.
Consider a Solow economy with the following Cobb-Douglas production function: The capital share of output (a) is 25%, population growth (n) is 1.5%, and the depreciation rate (δ) is 4%. The economy is in steady-state with a growth rate of output per ..
Assume that you have a budget of $30 to spend on milk and cereal only. What is the most you can purchase of cereal? What is the opportunity cost of three units of cereal? If you purchase 5 units of cereal (Qc=5), then how many of milk can you purchas..
Participate in a discussion with your classmates regarding the trade off between inflation and unemployment. Now that we have learned that the Short-Run Phillips Curve (SRPC) shows the trade off between inflation and unemployment at the given natural..
I am also going to invest $ 100000 of my saings which were earning an average annual rate of 6 % what is my opportunity cost of opening a restaurant?
How would equal educational achievement and equal income.
Describe absolute and comparative advantage. Explain the influences affecting foreign exchange rates.
Does Major League Baseball impose more, less, or the same amount of monopsony power on rookie players (those in their first few years in the majors) as on veteran players (say. those with 10+ years in the majors)? In explaining your answer, explain t..
When price of gasoline increases significantly, why should the market price of small automobiles (e.g. Mini Cooper, Smart Car, etc.) also increase? In addition to showing the demand-supply graphs, also explain the reasons for any shift in supply and/..
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