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Explain in a perfectly competitive market how a firm can make excess profit, incur loss and even shut down in the short run. (Draw graphs also)
Explain why relatively flat as opposite relatively steep labor demand curves are more consistent with the empirical observation that there are relatively minor changes in the real wage rate over the course of the business cycle.
After reviewing the first few chapters of your textbook Money and Banking , write a short paper on how your life is affected by the financial system. Find at least two online sources to support your position. For example, you can reference an article..
Assume a bank faces a required reserve ratio of 5 percent. If a bank has $200 million of checkable deposits and $15 million of total reserves, then how large are the bank's excess reserves?
Draw the Hick's income and substitution effects for c1,c2 in c1,c2 space if the interest rate decreases to .05.
Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. Explain at what price of computers (in terms of shirts) the two countries might trade.
A monopolist with a straight-line demand curve finds that it can sell two units at $12 each or 12 units at $2 each. Its marginal cost is constant at $3 per unit. Given the demand curve, draw the MR, and MC curves for this monopolist.
If Australia has relatively more land per worker, and Belgium has relatively more capital per worker, then if trade began between these two countries,
Woody's utility function is U(C, R)= C- (12-R)^2, where C is his consumption and R is the amount of leisure he has per day. He has 16 hours a day to divide between work and leisure. He has an income of 20$ a day from non-labour sources. If Woody can ..
Machine A was purchased last year for $20,000 and had an estimated MV of $2,000 at the end of its six-year life. Annual operating costs are $2,000. The machine will perform satisfactorily over the next five years. A salesman for another company is of..
In its effort to reduce the time value of money, the Federal Reserve System began aggressively increasing the supply of money through Quantitative Easing. What is true and what is false about the above statement? Explain
For the last several years, the money supply in the fictitious nation of Mauritania has been rising by 10% annually, and inflation has been running at 8%. The central bank is going to cut growth of the money supply back to 3% annually. Which of the f..
Please explain the difference between the transaction demand for money and the asset demand for money, and how they work together to determine the total demand for money. The slides and audio should help with this, as well as other sources of informa..
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