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1. How does rent control affect the real-estate market?
2. Are you in favor of rent control or not, and why?
3. What needs to happen to prevent scarcity from re-occurring in the future?
Using the IS-MP diagram, explain what happens to the economy if there is a temporary consumption boom that lasts for one period. Initially, suppose the FED keeps nominal interest rate unchanged. Now suppose you were the chairman of the FED. What acti..
(i) Marginal revenue exceeds marginal cost at the output produced; (ii) Marginal cost exceeds marginal revenue at the output produced.
Some remedies and preventive measures have been put forth to slow or forestall currency crises, such as capital controls and intermediate regimes (i.e., fixed or floating exchange rates). Discuss these measures and comment on whether they would be ef..
U.S. exports as a percentage of GDP have increased, but have not nearly doubled over the last 50 years. The U.S. currently has a trade surplus. U.S. exports as a percentage of GDP have about doubled over the last 50 years. The U.S. currently has a tr..
In the economic order quantity (EOQ) model, if the holding cost and the ordering cost both double, the value of Q* will:
Health capital decisions: What would happen to desired level of health capital if there is an increase in educational attainment? Please use the “supply and demand” type graph. Make sure to explain the graph and answer fully.
Find out the market equilibrium price and quantity. Compute the profit of a firm at the point of equilibrium. Is this longrun equilibrium.
Suppose that there preventative consumer’s preferences change, in that his or her marginal rate of substitution of leisure for consumption in- creases for any quantities of consumption and leisure. Explain what this change in preferences means in mor..
Suppose a confectioner (candy maker) and a doctor share a building for work. The confectioner uses half of the building, and the doctor meets with patients in his office in the other half of the building. Suppose the confectioner uses a very loud mac..
In evaluating projects, LeadTech’s engineers use a rate of 15%. One year ago a robotic-transfer machine was installed at a cost of $38,000. At the time, a 10-year life was estimated, but the machine has had a downtime rate of 28%, which is unacceptab..
Assume that a corrective tax is placed on aircraft passing over a residential area that is located near an airport. Should the proceeds of the corrective tax be used to compensate those who are harmed by the aircraft noise? Explain.
Official unemployment rate statistics may
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