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Part A: Using the economist's model of choice, explain the motivation for two decisions you have made in the past year.
Part B: Assuming that the law of diminishing marginal utility does not hold, how differently do you expect consumers to behave.
A system is subject to failure and repair. The conditions of components of the system are monitored by sensors. When the sensor measurement of the performance of a component is outside of tolerance, a message is generated. When a message is generated..
Suppose that the production of $1 million worth of steel in Mexico requires $100,000 worth of taconite. Mexico's nominal tariff rates for importing these goods are 20 percent for steel and 10 percent for taconite. Given this information, calculate th..
1. Suppose two firms compete by choosing quantities and that neither of them sees the other's quantity before having to commit to its own production level. Inverse market demand is given by
q.assume that omar s marginal utility for cups of coffee is constant at 3.5 units per cup no matter how many cups he
Given the state of the economy and the causes of that state, what should be the appropriate mix of fiscal and monetary policy, from a Keynesian perspective?
Suppose, in what is promoted as a cost-cutting move designed to save hundreds of billions of dollars in overhead, that Canada and the United States merge. (Some believe that the Canadians already have so infiltrated the United States that this is mer..
Next, explain how the adjustment to macroeconomic equilibrium occurs when spending is less than production.
Consider the case of a corn producer. This producer is a monopolist in the corn market. Since corn production uses significant amounts of fertilizers, it negatively affects the environment. Recall that, when a firm is a monopolist, it reduces its pro..
Find the equilibrium quantity and price. Calculate consumer surplus, producer surplus, and total surplus in this market.
Will each of the following transactions be included in GDP for the United States? Explain why or why not
Explain in detail the Kyoto Protocol and its current refinements. Why the protocol was negotiated, which countries have participated and which not, and what do you expect for the future of such a protocol? Do you think that countries could trade CO2 ..
It would cost the town of Irondale $50 million to build a gas powered generator that would produce a maximum of 5 megawatts of electricity at 15 cents per hour. Another alternative would be for Irondale to build a $100 million coal=fired generator th..
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