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Alternative price indexes
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The GDP deflator for this year is calculated by dividing the______________________ using ______ by the________________________ using ______ and multiplying by 100. However, the CPI reflects only the prices of all goods and services________ .
Does this firm’s production function exhibit diminishing returns to labor employment? Are labor and capital complements for this firm? Explain. What is the real wage rate paid by this firm? If total factor productivity (A) is 20, how much labor (L) w..
When a purely competitive market is in equilibrium:
Assume reductions in the amount of ground level ozone shift the marginal cost of producing alfalfa from MC1= 45 + 2QS to MC2= 45 + 0.5QS. Use the producer surplus to estimate the maximum amount alfalfa producers would be willing to pay for this impro..
Explain the effects of a tariff and a quota placed on imported automobiles on a domestic market. Who is hurt with a tariff or a quota and why? Who benefits and why?
What are the advantages and disadvantages of fixed versus floating exchange rates?
Assume which, in the efficiency wage model, it becomes more difficult for the ?rm to distinguish high-ability workers from low-ability workers in the labor market.
Discuss whether the Good Guy / Bad Guy Routine is useful in negotiations; whether impasses are fatal to negotiations; and if arbitration is a sign that negotiations have failed.
To introduce GNP and GDP, and other concepts of the National Income accounts, and to show how they help us understand the growth of the U.S. economy over the past century.
A profit-maximizing monopoly has pricing under the following conditions: the price charged for goods produced is $15, the intersection of the marginal-revenue and marginal-cost curves occurs where output is 105 units and marginal revenue is $10, and ..
Describe what a manufacturer of each product might do in the short run to raise production.
Illustrate what is the probability that this worker is a college graduate. A non-college graduate. Are educational achievement and employment states independent
The U.S. Bureau of Labor Statistics (BLS) collects unemployment and labor force participation data for a variety of groups of Americans (by age, gender, race, level of education, location, etc.). This data is available http://www.bls.gov. (You can fi..
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