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The price of oil has fallen into the range of $45-$50 dollars per barrel, down from over $90 per barrel just a few years ago. Explain the likely impact of this price decrease on the market for gasoline and the market for small cars
The existence of ability bias causes estimated rates of return to education to _______ the actual rate of return for a typical individual. The existence of ability bias causes estimated rates of return to education to _______ the actual rate of retur..
Write a 700- to 1,050-word paper explaining factors that affect supply and demand. Include the following Explain factors that could cause possible changes in supply and demand.
If you were macroeconomic policymaker, how do you balance the short-run trade off between inflation rate and unemployment rate? Explain. What is the historical relationship between rates of unemployment and inflation in the U.S. economy? What are the..
A new common stock issue that paid a dividend of $1.76 million last year. The firm's divendends are expected to grow at 6.1 percent, per year, forever. The price of the stock is currently $27.58. The cost of common equity
Rather than the short run effects of decreasing government spending, allow a self correcting economy to bring the model back to equilibrium, the government decides to act to eliminate the output gap through monetary policy. Explain how the government..
Elucidate how consumers in an economy can be better ff if the marginal rate of transformation does not equal consumer's marginal rate of consumption.
You own a large collection of fine wines. You are considering liquidating these assets. You predict that the value of your collection will rise in the next few years. If you assume your cost of capital to be 10 percent, when should you sell your coll..
Grapes must be harvested by hand. This production function is characterized by fixed proportions - each worker must have one pair of stem clippers to produce any output. Suppose a vinyard owner currently has 20 clippers. If the owner wishes to utiliz..
Among the types of costs faced by a firm (short-run costs, fixed and variable, as well as long-run costs), how cutting cost can be accomplished? What are some specific examples of how firms have used technology to lower costs?
Identify at least three such factors that, in your view, should be included in the GDP calculations; then elucidate and illustrate how could they will help to improve the GDP as a tool for measuring the well-being of a nation.
A market has a demand curve described by P=60-3Q and a supply curve described by P=20+2Q. Calculate Consumer Surplus
In 2008 tolls were raised on Bridge X. Consequently, bridge traffic decreased 40 percent and revenues rose 170 percent. Compute the price elasticity of the demand for access to Bridge X
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