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You have 100$ spend on food, housing, and clothing. Explain how their marginal utilities should be related to their respective prices to maximize utility. Generalize the result for any number of commodities.
One of the impacts that can erode the standard of living is inflation. The gov't uses the CPI to measure inflation. What is the CPI? How is it calculated? What are the uses of the information?
Suppose that, for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Now consider one such ditch-digging firm that has five backhoes but employs..
The women’s movement of the 1960s was part of a long effort by women fighting for equality since the late 1700s and continuing through today. The women’s movement is now more correctly envisioned as a gender movement Describe what a gender movement i..
What is smallest integer price that would make a firm willing to produce a positive amount. Suppose that Dent Carr's long-run total cost of repairing s cars per week.
Suppose the USA and Canada are considering to trade. Assume there are only two goods in the economy: wheat and corn. The table below illustrates what each nation can produce in a given year.
Suppose you are a thirty-year-old worker choosing between an IRA, a ROTH IRA and a regular brokerage account. Your marginal federal tax rate is 15% now and 15% in retirement. Compare after-tax returns on all three forms of investment. Rank the invest..
If the nominal interest rate in Japan remains unchanged, what happens to the interest rate paid on Korean deposits.
Illustrate what is value (in millions) of Trumbull's equity if it is viewed as an option. Illustrate what is yield on Trumbull's debt.
You've recently learned that the company where you work is being sold for $475,000. The company's income statement indicates current profits o. $18,000, which have yet to be paid out as dividends. Assuming the company will remain a " going concern" i..
What happens to price and output in the Cournot, Bertrand, and Stackelberg models if marginal costs increase by 10 percent? The market demand is p = a-bQ and the marginal cost is constant across firms, i.e. mc1 = mc2 = c. You may consider for two fir..
A pure monopolist determines that at the current level of output the marginal cost of production is $2, average variable costs are $2.75, and average total costs are $2.95. The marginal revenue is $2.75. What would you recommend that the monopolist..
From chapter 8 (chapter 21 in the combined volume), we know that the primary cause of inflation is expansion of the money supply. In this chapter, we learn an additional side effect of monetary expansion. What is this effect? A. Current account defic..
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