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Compare the expected present value of net benefits of US social security for (a) earlier vs. later generations, (b) men vs. women, and (c) people who were married for over 10 years vs. people who were not. The present value of net benefits includes all taxes paid and benefits received throughout the people’s lifetimes. In each comparison, explain carefully what it is about the social security system and about one of the groups that gives that group higher expected present value of net social security benefits than the group it is compared to
If the price elasticity of demand is equal to 0, then demand is unit elastic. To be binding, a price ceiling must be set above the equilibrium price.
What effect would this have on the strategic learning equilibrium. In particular, might the incentives for strategic learning disappear?
Using the appropriate graph, carefully describe why utility maximizing households would most likely chose to have fewer children as their income grows.
The company's engineer estimated that the production of the new product has a 88% learning curve applied to labor required, and the time to complete the first unit was 54 labor hours. Assume the time required to complete the 10th unit and the competi..
Depreciable residential rental real property has been purchased for $70,000 and put into service during the third month of the taxpayer's tax year. For the applicable 27.5 year depreciation life. How many months of depreciation should be generated fo..
We grow wheat that sells for $40,000. The wheat is milled into flour that sells for $55,000. The flour is used to bake bread that sells to consumers for $90,000. If nGDP is $9000 billion while rGDP is $12,000 then the GDP deflator is...
Widgets are supplied by a competitive constant-cost industry. On Monday, the industry is in both short-run and long-run equilibrium. On Tuesday, the demand for widgets increases and the industry moves to a new short-run equilibrium. On which day or d..
Sally has set aside about $7500 for a down payment, and she has budgeted for a monthly payment of $900. She expects that her salary will increase about 5% per year in real terms,but she would like to use that increase for “fun” purposes. Sally is als..
Apply the IS/LM fr. amework to explain the following question. In the early 1980's to combat the recessionary forces, President Ron Reagan used expansionary fiscal policy by lowering (marginal) tax rates to combat the recession. Concurrently, Paul Vo..
The Profit Maximizing condition for firms facing perfect competition is 1) Marginal Revenue = Marginal Cost and 2) Marginal Cost must cut through Marginal Revenue from below. Market structure is measured in the ability to set the price of the output...
By how much should domestic auto-makers increase the cost of automobiles if they wish to increase sales by 5 percent next year.
If se economists ignore possibility of crowding out, illustrate what would they approximate marginal propensity to consume (MPC) to be
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