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“Rising oil prices will lead to decreased employment, lower wage rates and decreased real money balances.” Comment on this statement with the help of an AD-AS diagram and explain the short-run and long-run adjustment processes.
Suppose a perfectly competitive firm sees that price is $23 in the market place. It notices that the cost of producing the next unit of output is $26. What advice would you give to this firm? Graph and Explain Your Answer
In April, eggs cost $2 per dozen, wine costs $1 per bottle, your income is $120, and you buy 50 dozen eggs. In May, eggs cost 50 cents per dozen, wine still costs $1 per bottle, and your income is $60. Is it possible to tell in which month you are ha..
For se shipment patterns, what would be better brewery location for minimizing annual transportation costs to warehouses.
Suppose that the equilibrium price in the market for widgets is $5. If a law reduced the maximum legal price for widgets to $4:
Find the optimal (x, y, λ) for max u(x,y)= kx^ay^b s.t. PxX+PyY = m, in terms of the parameters of the model. Prove that the optimal (x,y, λ) is indeed a maximum. Comment
q1. explain how does a country become an importer of a good? an exporter of a good? illustrate what is a tariff?
If you have a series of cash flows, each of which is positive, you can solve for I, where the solution value of I causes the PV of the cash flows to equal the cash flow at Time 0.
Suppose that macroeconomics forecasters predict that economy will be expanding in near future. How might managers use this information.
Why these former employees faced difficulties because the market for their very technical skills was declining. These workers were.
Over the past decade medical costs have increased more rapidly than other prices. In order to illustrate how rising medical costs have affected consumer alternatives, let X represent the quantity of medical services, and let Y represent the quantity ..
Industry-land was so named because it is highly industrialized. It is a world leader in production of manufactured goods. If industry-land put all its productive efforts into manufactured goods, it could produce 1,000 units per year. Draw a produc..
Intel’s profit increases. the price of a share of its stock doesn’t change and the dividend doesn’t change. as a result, Intel’s PE ratio__________ and Intel’s dividend yield_________.
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