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Q1. Consider an income guarantee program with an income guarantee of $6,000 and a benefit reduction rate of 50%. A person can work up to 2,000 hours per year at $10 per hour.
A. Draw the person's budget constraint without the income guarantee.
B. Draw the person's budget constraint with the income guarantee.
C. Assume the income guarantee rises to $9,000 but with a 100% reduction rate. Draw the new budget constraint.
Q2. The May unemployment figures were released Friday, and at 8.2%, unemployment had increased by .1%, and new jobs were less than half of the projected number. What impact will this have on the U.S. economy?
Under what circumstances would Gore be better off giving Bush a head start on putting together his presidential ticket.
A Fenway park, home of the Boston Red Sox, seating is limited to 39.000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue.
Calculate the profit maximizing cost per unit if COST MART has an average wholesale cost of $350 as well as incurs marginal selling cost of $100 per unit
Assume that the marginal cost of providing lockers is zero as well as the monthly demand as well as for lockers is estimated to be best described.
Represent graphically the effects of an expansionary monetary policy and a contraction fiscal policy in the IS/LM/FX model.
Explicate which among the policies is most effective and least effective for this nation.
On one hand, the WTO's role in international trade is becoming more significant. On the other hand, its verdict on the Brazil's Embraer versus Canada's Bombardier case did not seem to solve the problem.
At his current consumption basket, his marginal utility for hot dogs is 5 and his marginal utility for sodas is 3.
Demand curve is d1, what will be the change in her revenue. If her demand curve is d2 what will be the change in her revenue.
Suppose that the price of IPATH increases by 5%,at the same time the price of laptops falls by 3% and income elasticity increases by 2%.
We operate 300 days per year and have found that an order must be placed with our supplier 6 working days before we can expect to receive that order.
Federal Reserve lowers the required reserve ratio from 0.10 to 0.05. How does this affect the simple money multiplier.
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