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1. Why would cash transfers typically be preferred by recipients over in-kind transfers? Why would cash transfers typically be preferred by recipients over in-kind transfers?
2. Who gains and who loses from a tariff? How do the effects of tariffs differ from the effects of quotas? If you were a small country, what would you rather utilize?
What is the equivalent present value of the following series of payments: $7000 the first year, $6500 the second year, $6000 the third year, $5500 the fourth year, and $5000 the fifth year? The interest rate is 10%, compounded annually. Answer: $2..
What does it mean for two goods to be "perfect substitutes" for each other for a consumer Why is the optimal bundle usually a corner solution when a consumer is choosing a bundle of perfect substitutes
Assess the degree of difficulty associated with measuring marginal revenue product for each of the following occupations.
Suppose the government institutes a new sales tax on shoes, which are produced by a competitive constant-cost industry. a. Does the price of shoes change by more in the short run or in the long run b. Does the industry-wide quantity change by more in..
What happen causing both the demand and supply curves to shift. Find the new equilibrium price and quantity after both shifts
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulate..
What is the nominal GDP today What is the difference between nominal and real GDP What is the largest component of GDP What is the smallest component of GDP What is the fastest growing component of GDP and why
Before 2005, economists estimated the cross-price elasticity between fruits and vegetables to be +1.5. Since the introduction in 2005 of the "New Food Pyramid", the revised estimate of the cross-price elasticity between fruits and vegetables is no..
The Laser Printer Company decides monthly what to produce during the subsequent month. It produces three types of specialty printers-the Laser Rocket, The Laser Omega and the Laser Alpha-which bring them profit of $60, $90, and $73, respectively.
Economists often argue that a temporary increase in government purchases -say for military purposes-will crowd out private investment. Use the saving-investment diagram to illustrate this point, explaining why the curve(s) shift. Does it matter wh..
Explain in your own words what happened with these companies which caused an international financial crisis. Identify at least one management goal for Fannie Mae and Freddie Mac.
Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch fresh fish. The accompanying table shows the maximum annual output combinations of potatoes and fish that can be produced.
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