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What would be the likely effects on the solvency of the social security system of
a) a recent announcement that people are expected to live shorter lives than previously expected
b) the Congress lowering the retirement age for full benefits to 60 years old
c) the population growth rate rising
Residents of a city vote directly over the level of public spending. There are 3005 voters in the city. Voters differ in their income Y : the mean income of the voters is $50, 000 and the median income is $40, 000. Set up the voter’s utility in terms..
When the market generates an equilibrium price, we know
Whenever currency is deposited into a commercial bank, cash goes out of circulation and, as a result, the supply of money is reduced. Do you agree? Explain why or why not.
Explain why "supply of labor" is a critically important variable in macro-economics.
If we assume only one factor (labor), we can demonstrate on the PPF the opportunity cost of producing less of one good and more of the other good by:
How is inflation targeting consistent with the "dual mandate" of price stability and maximum employment?
Suraj Metals are expected to declare a dividend of Rs. 5 per share and the growth rate in dividends is expected to grow @ 10% p.a. The price of one share is currently at Rs. 110 in the market. What is the cost of equity capital to the company?
Your company is interested in analyzing the behavior of interest rates and the models used to predict interest rates in the future. As an initial project in this area, you have been assigned the task of creating a presentation that will show the top ..
The overall (goods and services) trade deficit is $566 billion. Net foreign income is $237 billion. Capital inflows are $948 billion. Capital outflows are $752 billion. What is the current account balance? What is the statistical discrepancy?
Explain under what conditions oligopolistic market structures lead to higher productive and allocative efficiency and more choice for consumers.
Hamlet will trade two pizzas for one six-pack for beer and be equally happy. At the same time, Ophelia will gladly exchange two of her six-packs for six pizzas. Is the allocation of beer and pizza Pareto efficient? Illustrate using an, Edge worth Box..
The USPS operates a network of more than 31,000 post offices. The majority of these post offices do not generate revenues sufficiently high in relation to costs to justify keeping them in operation. If the USPS were truly a private firm, many of thes..
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