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All other things remaining equal, which of the following changes would cause the AD curve to become steeper? To become flatter?
an increase in the interest-rate responsiveness of autonomous consumption?
an increase in the interest-rate responsiveness of real money demand?
an increase in the marginal tax rate?
an increase in the marginal propensity to import?
an increase in the income responsiveness of real money demand?
Consider what you have learned about the root causes, as identified by leading economic thinkers and policymakers.
Suppose which the owners of the only gambling casino in Wisconsin spend large sums of money lobbying state government officials to protect their monopoly of gambling.
Calculate the deadweight loss (DWL) from the price ceiling. Find a price floor that will result in the same magnitude of DWL. [Note: P = price per unit; Qd = hundreds of units demanded; Qs = hundreds of units supplied]
Illustrate what steps do you suggest that it take in order to balance its budget. What would be the affect on you if it takes steps to balance its budget, or Illustrate what would be the affect on you if it does not.
Discuss the source of tension between cooperation and self-interest in a market characterized by oligopoly. Use an example of an actual cartel arrangement to demonstrate why this tension creates instability in cartels.
The DOT is testing a new restoration & maintenance resurfacing project. The annual cost of the new equipment is $120,000/year and material cost is $4/mile. Alternatively, the traditional process requires equipment that cost $150,000 today with a 15 y..
What is the process by which a recessionary gap closes itself? Explain. Why might this self-correcting mechanism work slowly in the face of a recessionary gap?
We can be certain that in the short-run a monopoly will produce the level of output that minimizes the cost on per unit basis. A well developed financial system helps reduce the effect of the initial investment requirement as a potential barrier to ..
Assume that the market shares for antidepressants are as follows: Brand Market Shares Prozac 40% Paxil 25% Zoloft 25% others 10% (a) Calculate the Herfindahl-Hirschman Index (HHI) for the antidepressant market based upon these market share numbers.
What do you think is the future of such predictive capabilities?
Health insurance companies are oligopolies, and one of the criticisms of oligopolies is the adverse impacts these firms have on income distribution. Discuss in relation to the policies and practices of health insurance companies.
How much equity would she have had in the house at the time of its sale.
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