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Professor Grubert of MIT points out that nearly half of federal government spending is on social insurance programs, like social security, Medicare and Medicaid, Supplemental Nutrition Assistance Program or food stamps, the Earned Income Tax Credit, and so on. Can these programs be rationalized by market failures? Explain your answer
The article utilize this kind of calculation to show the difference among labor productivity growth.
Suppose you have the following regression equation where PROD = output produced per month, LHR = labor hours paid per month, and QUAL = quality of raw materials purchased within the month, and T=trend variable: Prod = ß0 + ß1LHR + ß2QUAL + ß3T. If ß3..
Create a one security plan for all three proposed Operating Systems; Network OS, Standalone OS, and Mobile Device OS.
Investors in the JMJ Group purchased hotel resort in April. The group paid $25M for the building and the land. The land was appraised $5M. The group sold the resort 3 years later in August for $30M. The land was appraised then at $10M. If the income ..
Suppose that for Italy in 2008, exports 400 billion euros of goods and 300 billion euros in services, imports equaled 500 billion euros of goods and 350 billion euros of services, and the rest of the world purchased 250 billion euros of Italy’s asset..
Plot the demand and supply curves. Describe the tax incidence- how much of the tax is paid by consumers and how much is paid by producers? Calculate the dollar value of consumer surplus, producer surplus, government revenue, and deadweight loss after..
Assume that some rational consumer X has satisfied the optimal purchase rule (the equi-marginal principle) and then the price of gasoline drops. If everything that X purchases is a normal (superior) good, then....
Suppose that, for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants for the production of three different quantities of ditc..
Suppose that the demand and supply functions for good X are Qd= 298-8P Qs= -32 + 4P. Find the equilibrium price and quantity? What is the market outcome if price is $35? What do you expect to happen? Why? What happens to equilibrium price and quantit..
$1000 was withdrawn from a savings account earning 3% interest, $2000 additional was borrowed @ 7% interest. What is the opportunity cost of the financial capital invested in the business? When a firms only variable input is labor, then the slope of ..
Suppose that two countries are exactly alike in every respect (meaning they have the same levels of capital, output, depreciation, etc.) except that the citizens of country A have a higher saving rate than the citizens of country B. which country wil..
Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 5%, the growth rate of the velocity of money is 4% and that the real economic growth rate i..
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