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Suppose the education an individual acquires makes her a more productive member of the workforce and also decreases the likelihood of her supporting dictator. Explain why market recognizes the first effect, but not the second?
The Law of Demand states that the demand for a product is inversely related to the cost of such product.
A 10% increase in the slice of pizza causes a 10% drop in quantity of both pizza and beer. Describe elasticities and the nature of the two products
What is the average fixed cost of producing 4 units of output and What is the marginal cost of producing the third unit of output.
A friend tells you that you should never be a patient in a teaching hospital because the death rate among patients in teaching hospitals is higher than in other hospitals. Interpret the meaning of the regression coefficient on the explanatory variabl..
At prompting of United States, Japan relaxed restrictions and allowed companies to invest anywhere in world. What effect do you think this had on yen/dollar exchange rate and trade balance between two countries.
Relative poverty might be defined based on the: Assume someone with no income gets $1000 per month in benefits and there is a benefit-reduction rate of 60%. Someone that earns $1200 per month would have how much total income (including wage and benef..
Suppose that one must divide $1,000 among 100 students. Which divisions are efficient?
From 1982 to 1986 retail sales of furs in the U.S rose from $0.4 billion to 1.0 billion. After this time, there was no additional growth until 1989 when sales increased slightly to $2 billion. Subsequently there was a plunge in fur sales which droppe..
Suppose the average household in a state consumes 800 gallons of gasoline per year. A .20 tax is introduced coupled with a $160 annual tax rebate per household. Will the household be better or worse off?
Consider a city where a new automobile factory is scheduled to open. The factory will employ 1,000 people, and the city's employment multiplier for the automobile industry is 2.5. The city's elasticity of labor supply is 1.8, and its elasticity of la..
lisa has a linear budget constraint and typical convex indifference curves associated with food and "all other goods." suppose that lisa is given $50 worth of food stamps, which can only be used for food, Draw lisa's budget constraints, with an witho..
Many economists agree that government should deal with monopolists on a case-by-case basis. Policy options include the following, except:
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