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The existence of unemployment
a. Suppose the unemployment rate is very low. How easy is it for firms to find workers to hire? How easy is it for workers to find jobs? What do your answers imply about the relative bargaining power of workers and firms when the unemployment rate is very low? What do your answers imply about what happens to the wage as the unemployment rate gets very low?
b. Given your answer to part (a), why is there unemployment in the economy? (What would happen to real wages if the unemployment rate were equal to zero?)
Industry structure is often measured by computing the Four Firm Concentration Ratio. Assume you have an industry with 20 companies and the CR IS 30 percent.
Assume that 60 students take a triangle test with Coke and Pepsi. Each student taste three glasses where two drinks are identical. The students have to find out which of the three glasses contains the different drink.
Suppose that the forecast is that the U.S. and local economies will grow by an unusually fast rate of 4% in 2013. What should a small business selling paint do in the next three months to prepare for that growth in the eonomy
a firm produces a product with a fully allocated average cost equal to 20. if the price elasticity of demand for the
If a customer withdrew $2,000 in cash from a bank and the reserve ratio was 0.2, by how much could the supply of money eventually be reduced?
A firm is operating in a competitive market. The firm has a cost function C(Y)=2Y^2+2 and marginal cost MC=4Y. If the price is $20. a) what will the maximum profit be b) If the inverse demand is given by P=30-Y, what quantity will the firm produce..
assuming elasticity is linear and a plan flight holds 310 seats a load factor of 70 mean 70% of the seats are filled. a load factor of 72 means 72% of the seats are filled. what price would it take to fill all the seats.
Interpret the following regression equation together with all the supporting statistics where Yt is the number of new cars sold (millions of units), X1t is the disposable income of consumers ($B), X2t is the price of a new car ..
If the current stock of capital is fixed at 250 units, how many full-time workers should the firm employ if the weekly salary of each full-time worker (w) is $400 per week Compute the firm's level of output and profits per week in this short-run e..
Country A has 1500 units of labor and can produce two goods, manufactures and food. A's producers take 5 units of labor to produce one unit of manufactures and 6 units to produce one unit of food. Country B has 1800 units of labor and takes 3 unit..
A local video store estimates their average customer's demand per year is Q = 20 - 4P, and knows the marginal cost of each rental is $1.00. How much should the store charge for an annual membership in order to extract consumer surplus.
If the Fed now raises required reserves to 20 percent of deposits, what is the change in reserves and the change in the money supply?
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