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In 2013 and 2014, a federal judge ruled that Apple colluded with five major U.S. publishers to drive up the prices of e-books(which could be read on Apple's Ipad). Apple collects 30% commission on the price of a book from the publisher. Why would Apple want to help publishers raise their price? Given Apple's commission, what price would a book cartel want to set? (HINT: the marginal cost of an e-book is virtually zero)
The FOMC is scheduled to meet on December 13-14 and it is anticipated that they will raise the federal funds rate. Explain what the federal funds rate is. Current inflation is less than the Fed's 2% goal. Does a lower interest rate help the Fed achie..
Represent the following game in the extensive form. There are three players, numbered 1, 2, and 3. At the beginning of the game, players 1 and 2 simultaneously make decisions, each choosing between “X” and “Y.” If they both choose “X,” then the game ..
The process of specialization and exchange allows a producer to become a. proficient in one or a few areas of production b. proficient in all areas of production c. self-sufficient d. independent
What are the four stages of the business cycle? In which stage do you believe the U.S economy is now? Why? What is the gross domestic product? What is its relationship to productivity? What are the effects of inflation on an economy? What are the eff..
What is the Law of Diminishing Returns. Discuss a company's two short run options: 1. stay open or 2. shut down.
Suppose that the total market value of all the final goods and services produced in the country of GDPLAND is $34 billion in 2008 ( measured in 2008 prices ) and $36 billion in 2009 ( measured in 2009 prices ). Which of the following statements is..
What appears to be major constraint that central banks used to determine limits of monetary injections into economy. Did United States use same or different criteria.
Based on your knowledge of the Commerce Clause, what would happen if a business or individual sued Oregon over Measure 91, arguing that they were injured because their employees are now arriving to work “intoxicated” on legal marijuana?
Assume that the government increases its spending by $100 million to stimulate demand. In the long run, the effect of this spending is to
He sold the house in 2006 for $225,0000. Which statements is correct regarding the sale of the house.
Describe the economic tools available for use to help build a sustainable society. Explain the trade-offs you believe we would have to make. In your response to your classmates indicate whether you believe the sacrifices would be too great for societ..
Often, there is news and critics that cast stones at the economic policies of Congress and/or the President. However, I find that average critics don't offer up an alternative solution, but simply criticize. Pretent that you are in charge for a day o..
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