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Suppose that a consumer's preference between the good x and y are represented by the utility function u(x,y)= x+y. If these two goods have the same price, describe the optimal consumption choices of this consumer.
The following table lists the name, gender, height and reservation wage of 10 persons willing to work as firefighters in Timber Creek. What is the lowest wage that Timber Creek must pay to hire five firefighters? You answered the question $380/week (..
q. imports of peanuts into the united states are subject to a quota set at about 1.7 million pounds per year.a.
Your friend Gail is an electrician who does repair and installation work for small businesses and homeowners. She often has customers ask her if she will accept a credit card in payment for her services, but she has been reluctant to set up a credit ..
Please identify four policies the government enacted following the financial crisis. Evaluate what effect these policies would have on the economy from both a short-run and a long-run perspective. A definition of the measures used to determine econom..
If the average worker produces $80,000 of GDP, explain by how much will GDP increase if there are 150 million labor-force participants and the unemployment rate drops from 5.2 to 4.5 percent.
Why does a union electrician earn less than a non-union electrician? Why does a white male earn more than a white female with the same level of education?
If a country's growth is biased in favor of its import, this should unequivocally improve its terms of trade also its economic welfare. Use a graph to explain why
Explain the concept of the multiplier, and explain the role of the marginal propensity to consume in determining the size of the multiplier. Explain how the size of the multiplier will change when one brings in the role of the marginal tax rate.
If the nominal interest rate is 4 percent and expected inflation is 1 percent, what is the real interest rate? Suppose instead that the nominal interest rate is 80 percent and the expected inflation rate is 40 percent.
What problem is the economy facing? Assume you are a governor on the Federal Reserve Board of Governors. What type of policy (easy money or tight money) would you recommend to fix the problem you identified in question 1? What could happen in the eco..
Thoroughly and completely explain how your approach would work to eliminate the national debt, and explain the impact your solution would have on at least 5 key economic variables?
Suppose your Zimbabwean bank account pays interest monthly with the interest rate quoted as an effective annual rate (EAR) of 50%. (a) What percent interest will you earn each month? (b) Suppose the weekly inflation rate in Zimbabwe is 1%. What is th..
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