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Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram onto a sheet of paper and then add a foreign country as a third agent. Draw a rough sketch of the flows of imports, exports, and the payments for each on your diagram.
Given what you know about production technology and production functions, explain this seeming inconsistency.
The firm's production manager claimsthat the firm's average cost of production is minimized at anoutput of 40 units. Furthermore, she claims that 40 units is the firm's profit-maximizing level of output. Explain whether these claims are correct.
The company you work for has a high speed 5-axis milling machine which was purchased 5 years ago for $200,000 and has a 10 year life. This machine is currently idle and can be used to make a product designed by a research institute
Does that rule make sense from the perspective of economic efficiency? Why or why not?
suppose y1 y2 ... y100 are a sample of 100 independent and identically distributed random variables with a mean of 0
Suppose that the velocity of money is not constant but is growing at 1% per year. Real GDP is growing by 5% per year. If the central bank wants to reduce the rate of inflation to 3%, what must be the new rate of money growth? If the real rate if r..
Suppose a firm produces its output in two different plants. Production costs at plant 1 are given by C1 = 4(Q1)2, where Q1 is the amount of production at plant 1. The production costs at plant 2 are given by C2 = 2(Q2)2
Assume that the price index is one hundred and a typical basket of goods and services cost $8. Within the basket, you had four hamburgers and 3 hot dogs.
a. Find the optimal soulution using the graphical soulution procedure and the value of the objective function b. determine the amount of slack or surplus for each constraint c. suppose the objective function is changed to max 5A+2B.
My brother has a house worth $400,000 and he has no mortgage as it is paid off! His utility bills and insurance and maintenance cost him about %500 per month and property taxes another $500 per month. He claims it only costs him about $1000 a mont..
Identify at least one example of each from your community or state. What are the differences in populations served by these hospitals? Are they urban or rural? Do the services vary? Explain your answer.
What pollution tax would abate 8 tons of pollution? How much pollution would each firm abate with the tax? What is the total cost paid to reduce pollution from 20 to 12 if the government imposes the tax?
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