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Alanoud likes hamburgers and pizza. At her current level of consumption, her marginal rate of substitution of hamburgers for slices of pizza is 2. Explain what this means. If she increases her consumption of hamburgers, will her MRS (relinquishing hamburgers for additional pizza) increase or decrease?
Because the Federal Reserve is not constrained by a fixed exchange rate, it is free to set monetary policy without concerns about the effect on the value of the dollar. How would the Fed’s actions during the 2007-2009 financial crisis have been conta..
Which of the following situations is likely to involve adverse selection?
XYZ School District is having budget issues and is facing the possibility of cutting some programs. How could one use ethical principles to address their budget issues?
The Consumer Price Index (CPI). Which of the following does the consumer price index (CPI) include? Which of the following goods are included in the CPI but ignored by the GDP deflator?
Some observes claim that laxity of the rules governing the creation, sale and purchase of some types of securities bear much of the guilt for the Great Recession of the early twenty-first century. Can you suggest some specific types of activity that ..
There are many economists who defend the notion that the United States has to clean up their trade policies in terms of relationships, agreements and even tariffs- Their justification is that in order to compete, the United States should position the..
Do you think that monetary policy works better through the indirect effect of low interest rates or better through the direct effects of increased money and spending? Can the government cause a recession and then limit the strength and speed of the e..
Unionization adds to the cost of hiring labor, thereby decreasing aggregate supply. All else remaining constant, what will be the long-run impact on the price level and GDP output?
Assume that a consumer has the utility function U(x,y) = 3x+y, where x and y represent the quantities of two goods, X and Y. The consumer has I=$60 to spend on the two goods, and good Y costs py=$2 per unit. The price of good x, px, is also exogenous..
Regression with Logs. Using data from 1981 for houses sold in North Andover, Massachusetts, the model that relates housing price (measured in thousands of dollars) to the distance from a recently built garbage incinerator (measured in miles) was esti..
Discuss what UPS’s business customers are looking for when committing to work with UPS?. How does UPS’s marketing and sales to business customers differ from working with its residential consumers? Discuss how the UPS story relates to the major conce..
787b stimulus bill approvedwashington-less than one month after president obama took office congress last night passed
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