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Macroeconomics Question: Describe what the permanent income hypothesis says about the impact of temporary tax cuts or spending increases and explain why?
Demand for airline tickets fluctuates throughout the year, which affects the price of an airline ticket. Suggest the type of game that may be most appropriate for a specific airline to play to address the differences in demand and elasticity and the ..
Explain the solution to the firm's cost-minimization difficulty ever occur off the iso-quant representing the required level of output.
Discuss at least two alternative measures of national welfare that have been put forward? What are the primary strengths and weaknesses of these alternatives and discuss at least two alternative measures of national welfare that have been put f..
The multiplier effect of a change in government purchases. Suppose the government in this economy decides to decrease government purchases by $250 billion. The decrease in government purchases will lead to a decrease in income, generating an initial ..
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
Each day Paul, who is in third grade, eats lunch at school. He likes only twinikies (t) and soda (s), and these provide him a utility of utility = U(t,s)=(ts)^1/2. If twinkies cost $0.10 each and soda costs $0.25 per cup, how should paul spend the $..
Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units o..
If the prices of pizza and submarine sandwiches double and so does Michael's money income, we can compute that Michael's budget constraint will.
In December 1992, the federal government began requiring that all foods display information about fat content and other ingredients on food packages. The displays had to be verified by independent laboratories. The price of an evaluation of a food pr..
At what level of output are total profit maximized. Illustrate what price will be charged.
Consider an economy where, consumer’s utility function is given as U(C,L)=C-(1/2)L2 . where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2 . The turnover cost per labor is (0.36)/(w/p). What happens to t as real wage i..
The maintenance foreman of a plant in reviewing his records found that maintenance costs on a large press had increased with sales of a product that will decline in the future. 5 Years Ago $600 4 Years Ago $700 3 Years Ago $800 2 Years Ago $900 Last ..
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