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Patrick chooses to use his time ‘free-time’: (a) working out or (b) reading. Patrick currently has 20 hours a week to allocate to these two activities. It takes Patrick 1.5 hour to work out and .5 hours to read. Patrick enjoys both activities, but he has recently focused more on improving his thought processes; therefore, he spends more time ‘reading’. Patrick feels that the optimal allocation of his time, based upon his budget constraints, is to allocate 12.5 hours to reading and 7.5 hours to working out. (a) Draw Patrick's budget constraint and optimal consumption bundle such that the number of hours that he spends working out is on the x-axis and the number of hours that he spends on reading is on the y-axis.
The exchange rate between the U.S. and Japan is floating, e.g. determined by the market. Suppose the U.S. government imposes import quotas on Japanese products. The quotas increase spending on domestic products. How does this affect the U.S. macro ec..
If the Japanese central bank maintains the disequilibrium fixed exchange rate of 150 yen per U.S. dollar, what happens to Japan's foreign reserves?
What would be the expected value of a bond if the annual interest payment is $80.00, the bond matures in 4 years, the principal is $1,000, and the yield to maturity is 9%?
increases the equilibrium GDP also the size of that increase varies directly with the size of the MPC
Hillary spends all her income on milk and cookies. Graph Hillary's budget line when income = $20, Pcookies= $1 & Pmilk= $2. Pick some point in the middle as her optimal choice and draw in the appropriate indifference curve. (PUT MILK on the Y-axis) D..
q.pcc and cdw are two online retailers which compete in an internet market for digital cameras. their products are some
If a deposit outflow of $50 million occurs, which balance sheet would a bank rather have initially, the balance sheet of the following balance sheet.
Priority Mail has been one of the most profitable products for the U.S. Postal Service, growing six times faster than first-class deliveries over the period from 1995 to 1999 and accounting for almost 8 percent of the Postal Service’s mail revenue. Y..
Show graphically the effect on the supply and demand for Bonds in a deflationary period.
Use separate graphs to sketch two indifference curves for people with each of the following utility functions.
Swim coach Rob teaches athletes how to swim freestyle while keeping their hips raised. Let q represent the number of swimmers that learn the technique, and let h represent the number of hours of individual training Rob provides in which the swimmers ..
Do you vote? Why or why not? What does the probability of decisiveness suggest you should do? What are the inefficiencies (social waste) associated with government granted monopolies?
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