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You and your two best friends all make $65,000 per year. Friend A lives in a city where prices on average are 5% lower. Friend B lives in a city where prices on average are 8% higher. Friend A has a purchasing power parity adjusted income of $__ and friend B has a purchasing power parity adjusted income of $__
Why do some low-wage countries, such as China, pose a threat to manufacturers in industrial countries, such as the United States, whereas other low-wage countries, such as Hai
The marginal costs (ci) and marginal benefits (bi) of getting more education can vary across individuals – i.e., heterogeneous costs and benefits. Assume that marginal costs i
There is an incumbent monopolist (I) and a potential entrant (E) in the Maryland soap market. Soap is homogenous and market inverse demand is P = 150 - Q where Q is total outp
Al owns a shoe factory with noisy machines which disturb his neighbor Bob. What is the efficient outcome – for the factory to shut down, to run silently, or to run noisily? Su
Elijah and Anastasia are husband and wife who have five married children and nine minor grandchildren. For 2015, what is the maximum amount they can give to their family (incl
Calculate the equilibrium buyers' and sellers' price with no sales tax, and then with the 20% tax. Explain how answer illustrates the principle that less responsive side of th
Why will there be less crowding out of private spending by government spending the less sensitive consumption, investment, and net exports are to changes in interest rates?
According to a Wall Street Journal article "MCI, in New Phone War Skirmish, Files Suit over AT&T Ad Claims," MCI was upset with AT&T over allegedly false claims that AT&T's se
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