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Explain why income inequality has changed in recent history. In the United States, what are some of the reasons for a less equal distribution of income over the past two decades? How has this been reflected in society, particularly in light of the question “how we ought to live?”
Output is y=(x1^1/2)*x2. The total cost equation is c=3x1+2x2 where w1=3 and w2=2. At the price of the output is p=6 what is the profit maximizing level of x2?
Suppose that a person invest 3000$ at 10% per year, compounded annually, for 8 years. (a) will this effectively protect the purchasing power of the original principal, given an annual inflation rate 8%? If so by how much
Joe and Jim purchase vegetables at a grocery store, but Jim also grows vegetables in his back yard. Only Joe’s grocery store purchases are included in GDP. Only Joe’s and Jim’s grocery store purchases are included in GDP.
In 1986, John Deere was building a capital intensive factory to produce large, four-wheel-drive farm tractors. Then the price of wheat dropped dramatically, reducing demand for these tractors because they are used extensively for harvesting wheat. Ca..
Suppose that spending an extra $2m on advertising by GE will reduce its expected profits by $1.5 m, regardless of whether Maytag enters or stays out. Would this additional spending on advertising achieve the effect of deterring Maytag from enterin..
List one way that a market-based health insurance system fails to limit costs. Then, discuss how either the Affordable Care Act or a single-payer system would correct that failure.
Behavioral finance is a brand-new field in analyzing prices in the market. In fact, most of the explanations come from psychological observations of daily lives. Provide a real world example that is not mentioned in class to show that people prefer t..
Elucidate how each change mentioned in the article impacts upon the aggregate expenditure model.
In developing a vaccine for the SARS virus a pharmaceutical company incurs a very high fixed cost. The marginal cost of delivering the vaccine to patients, however, is negligible (consider it to be equal to zero).
The "interest-only" mortgage typically converts later to a:
Firms in the market for soccer balls are selling in a purely competitive market. A firm in the soccer ball market has an output of 5,000 balls, which it sells for $10 each. At the output level of 5,000 the average variable cost is $6.00, the average ..
Suppose K = 1,000; L = 200 workers; and M = value of all materials use at 450. Derive the total product or output. Find and interpret the output elasticity (or elasticity’s).
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