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If undergraduate universities changed from a letter grading system (A,B,C,D,F) to a pass-fail system, what impact would this most likely have on the usefulness of education as an effective employee screening device? Analyze what effect this may have on the demand for graduate education.
Given that attendance at minor league baseball games are substitutes for attendance at MLB games. Explain why a fall in minor league ticket prices may adversely affect MLB game attendance.
Suppose the county government has the choice to invest in a public library or a basketball court. It can't invest in both. A public library is very expensive to build and maintain, but it will serve the county for 20 years. The present value of the n..
A machine costing $35,000 to buy and $4,000 per year to operate will save mainly labor expenses in packaging over six years. The anticipated salvage value of the machine at the end of the six years is $5,000. To receive a 12% return on investment (ra..
In a recession, needs-tested spending and induced taxes
What are the corresponding retail and wholesale prices? What would happen if the sales are switched from the retail to the wholesale and vice versa?
Given equipment price, E , what is the price of service in terms of E? Competition in the equipment market, however, drives the equipment manufacturer's long-run profit to zero. What is the price of equipment?
Which of the following was not a contributing cause of the decline in investment and thus the recessionary expenditure gap occurring during the U.S. recession of 2001.
Two common drawbacks of Pigouvian subsidy mentioned in the literature are related to monetisation and measurement of social cost (Baumol) and reciprocity of social cost (Coase). What alternatives to Pigouvian taxes are proposed in the literature? Hav..
Representative consumers have the utility function U(C,Ls) = log(C) + log(1- Ls). Representative consumers have labor endowment of 1. So Ls must be less than 1. Write down the budget constraint of the representative consumer. Write down the maximizat..
Recall the application on rent control and mismatches. Under rent control, the government sets a maximum price for housing, decreasing the quantity supplied and the total value of the market. Rent control and other maximum prices cause ________ possi..
A computer is purchased for P=$86,919, has a service life of n=7 years, and a salvage value of $5,000. At an interest rate of 15%, determine the capital recovery amount for this project.
Be able to examine critically the health of the economy as a whole through the analysis of major economic variables and advise on likely policy alternatives
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