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A newspaper headline reads "Fed Raises Discount Rate for Third Time This Year." This headline indicates that the Federal Reserve is most likely trying to :
A) Stimulate the economy
B) Increase the money supply
C) Reduce the cost of credit
D) Reduce inflationary pressures in the economy.
what is the new wage and employment level; are employees better or worse off as a result of the health insurance benefits?
Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for all combinations of the two goods in his indifference map. Suppose the price of apples is $2 per pound, the price of oranges is $3 per pound, and Bob's budget is ..
Enpar manufactures engine parts for an automotive manufacturer. It operates two plants, A and B, which have the following production functions: QA = 30SA – 0.25SA2 and QB = 40SB – 0.5SB2, where QA and QB denote the outputs of engine parts from each p..
Twin brother and sister, Carl and Christy graduated several years ago from college. Carl, an architect, has worked in home design with Bulte Homes since graduation. Christy, a civil engineer, works with Butler Industries in structural components and ..
The median household income in Louisiana is approximately $52,000 per year, while the median household income in Massachusetts is about $79,000. From the perspective of trying to maximize your income per capita, which state will have higher increases..
Two firms, Wickedly Efficient Widgets (WEW) and Wildly Nepotistic Widgets (WNW), produce widgets with the same production function y =K^(1/2) L^(1/2), where K is the input of capital and L is the input of labor
A internet company has a fixed cost of $1,750,000 per month and a variable cost of $25 per month per subscriber. The company charges $45.95 per month to its internet customers. The company currently has 75,000 subscribers and proposes to raise its mo..
Problem associated with first video: Increasing transformation Consider the following utility function u(x1, x2) = x1x2. Calculate the MRS for this utility function. Compute and compare the MRS for the bundles (x1, x2) = (1, 2) and (x1, x2) = (2, 1)...
In part, because of the workplace origins of illness and accident insurance, the perception of the employer’s obligation to cover all or part of health insurance premiums persisted as the scope of coverage broadened and the costs increased. Now, risi..
Explain why at first patents might seem such as a deterrent to growth because in effect they restrict the use of new technology
Calculate the ICER for the new treatment, assuming that the new treatment would replace the old one. In what quadrant is the ICER located in Figure 3-4? Is cost effectiveness analysis relevant? How does the answer change if the cost of the new treatm..
Suppose that the economy improves and the crime rate in West Philadelphia drops, so that the marginal product and average product of a group of 100 police offers is now 55 arrests per hour for any number of police officers. What is the optimal alloca..
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