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Discuss the following quote from Cowell (1995): ‘‘The main disadvantage of G[ini] is that an income transfer from a rich to a poorer man has a much greater effect on G if the men are near the middle rather than at either end of the parade.'' Do you agree? Why or why not? (Hint: Use the formula for the Gini coincident to determine the effect of a fixed transfer at different points in the income distribution.) Does the Gini have other ‘‘disadvantages''?
ABC is considering using the facility for a new training program. It could also rent a building about the same distance from its headquarters for $20,000 a year. A developer has offered ABC $2.5 million for its property.
Consider a couple's decision about how many children to have. Assume that over a lifetime a couple has 200,000 hours of time to either work or raise children. The wage is $10 per hour. Raising a child takes 20,000 hours of time.
If the local government can enforce a rent-control law that sets the maximum monthly rent at $1000, will there be a surplus or a shortage? Of how many units? Explain how the market can adjust?
What is the role of Congress in the United States? Why do we have both a federal and a state congress?
the weights of a population of parts made by a certain machine are normally distributed with a mean of ten pounds and a
A local business in a small college town has a major portion of their business to college bookstore. On the side they also provide services to other local businesses. The local demand is Q=200-5P. The average and marginal cost is $8.
On October 31, 2010 the USDMXN was 10.00. On the same date in 2011, the MXNUSD exchange rate was $0.07692. (use abbreviations only - USD or MXN) By what percent and in which direction did each currency change over this time period.
Suppose an s chart were to be substituted for the R chart. What would be the appropriate parameters of the s chart?
A firm is considering the purchase of circuit board stuffing machine that costs $100,000, has a 4-year life and zero salvage value. It will be used to produce $30,000 circuit boards per year. The MARR is 10%.
Suppose that the production function of an economy follows the formula Y = F(K, bN) where b denotes the number of units of "human capital" per worker and bN the "effectiveunits" of labor. Due to effective educational policy, the stock of human cap..
Find the price elasticity of demand (at every price range) for the demand given below. Characterize the demand as elastic/inelastic/unit elastic at each one of these price ranges. P Qd 120 80 100 72 80 65 60 60
For what levels of output does your firm have economies of scale? Is this a case for natural monopoly Why (b) Now assume you are a monopolist, and the demand for your product is P=2000-5Q. What price will you charge How much deadweight loss will ..
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