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Democracy, Government Responsiveness, and Electoral Accountability:
In the modern theory of the state, economists tend to think of the role of government as that of a (benevolent) social planner. How does the ‘new political economy’ depart from this traditional view of government as a social planner?
Think our company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs.
Explain how changes in prices result in a downwards sloping demand. Explain how changes in prices result in an upward sloping supply. What will happen when consumer demand equals producer supply?
Suppose you are given the following prices for two U.S. Treasury strips. Maturity date, Price, Yield to maturity: Nov 2014 41:25 6.83%,Nov 2015 38:27 6.87%. Assume for simplicity that the maturity dates are exactly 13 and 14 years from now (November)..
Consider the economies of Cakeland, which produces cupcakes, and Creamland, which produces ice cream. Labor is not mobile between Cakeland and Creamland. Suppose that people in both economies begin to demand more ice cream and fewer cupcakes. The res..
Elucidate what happen to the prices of oranges and marginal product of orange pickers as a result of a freeze. Can you say what happens to the demand for oranges pickers. Why or why not.
Why would a tax credit for mortgage intrest be worth more to lower income families than a deduction? Would you favor changing the benefit from a tac deduction to a tax credit? What other changes might you want to make at the same time? WHY?
If it cost Wardco $10million to treat the water and the value of mined products to customers is $8million, requiring water treatment would kill the project. Should Wardco be required to treat the water in this case?
How will planned investment spending change as the following events occur?
People often argue that economic rewards in society should be meritocratic, that is, that everyone should have an equal opportunity to get ahead and those that do succeed because of their greater ability, hard work, and so on, should then be allowed ..
Which of the following taxes are not equivalent to each other? Assume that each is a proportional tax.
Suppose the current price of gasoline at the pump is $1 per gallon and that 1 million gallons are sold per month. A politician proposes to add a 10¢ tax to the price of a gallon of gasoline.
Suppose that P1=10 and Q1=20; P2=20 and Q2=10. Suppose that price elasticity of demand is -1 for P=4, Q=10. Calculate marginal revenue for this point on the demand curve. Suppose price elasticity of demand is equal to -2 at a price of 4. If you incre..
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