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Both Veblen on one hand and Kahneman and Tversky oon the other hand challenged standard neoclassical notions of rationality. Explain the similarities and differences between Institutional Economics (Veblen) and Behavioral Economics (Kahneman and Tversky). Which presents a more fundamental challenge to neoclassical economics? Explain.
Using the formula for β^1 and β^0, show what will happen to the estimator of the slope and intercept in the SLR model if y is multiplied by the constant k, and at the same time x is multiplied by the constant m.
If the reserve ratio set by the Federal Reserve is 20% then what is the deposit multiplier? Your answer is-----. If the initial total reserves were 200 what level of total deposits the banking system can create? (Assume it is the simple banking syste..
Use Appendix A at the back of the text to show the compound annual rate of growth in earnings (n=4).
What is being held constant when a demand curve for a specific product (shoes or apples, for example) is constructed? Explain why the demand curve for a product slopes downward to the right.
Assume you are the plant manager for Crossroads Sign Company, which produces road signs in a market that approximates perfect competition. Due to a slow economy, business has been slow and the company is losing money every month.
You expect to live in a house you are planning to own for 5 years, with a $300K loan. You could get a 3/1 ARM amortized over 15 years at 3.9 % or a fixed 15 year loan at 5.0%. Assume the upfront costs and insurance under both loan options are the sam..
Short run cost function tables include information detailing average variable cost, average fixed cost. Average total cost, and marginal cost. Which of the figures do you consider most important for an organization to evaluate when determining levels..
A clinic has incremental costs per case of $10 and overhead costs of $100,000. It faces a price elasticity of demand of -2. What is the clinic’s profit-maximizing price? (Round to the nearest whole dollar)
According to a study, the price elasticity of jewelry is 1.2 and its income elasticity is 1.5 in the U.S. a. Would you suggest that Patton’s Jewelry Company cut its prices to increase its revenue? b. What would be expected to happen to the total quan..
Explain the liberal perspective on markets and the state with specific reference to the Keynes/Hayek debate. Why are the differences between them vital for understanding contemporary international political economy?
What is the social optimum quantity and price. Calculate the total surplus in the market equilibrium, at the social optimum and with the tax.
The federal government currently taxes alcohol on the basis of the 100-proof gallon. (Alcohol that is 100 proof is 50 percent pure ethyl alcohol; whereas wine is usually about 24 proofs, and most beer is 6-10 proof.) How would alcohol consumption pat..
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