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The marginal propensity to consume is equal to 0.80. An increase in household wealth causes autonomous consumption to rise by $10 billion. By how much will equilibrium real GDP increase at the current price level, other things equal?
Mr. Otto Carr, owner of Otto’s Autos, sells cars. Otto buys autos for $c each and has no other costs. What is his total cost if he sells 10 cars? What if he sells 20 cars? Write down the equation for Otto’s total costs assuming he sells y cars: TC(y)..
What is the solution of the Solow model for consumption per person in the steady state, c ∗ = C ∗/L∗ ? How does each parameter in the solution affect c ∗ , and why?
Toby is indifferent between the bundles (9, 3) and (5, 5). When Toby is at (9, 3), he would be willing to give up one unit of y if he were to receive two units of x. If Toby is at (5, 5), he would be willing to give up four units of x if he were to r..
Describe the Heckscher-Ohlin model (also known as the factor endowment). How does it predict countries will emphasize their comparative advantage?
q.your complete portfolio is 400000 and is comprised of a risk free asset that pays 5 and a risky asset that has an
His plant engineers report that, at his projected volume, labor costs are $1.00 per package, material costs are $2.00 per package, and other average fixed costs are about $0.7. What price should he charge for his firm's product?
The Kuznets ratios satisfy the Dalton transfer principle. If the Lorenz curves of two situations do not cross, the Gini coefficient and the coefficient of variation cannot disagree. If a relatively poor person loses income to a relatively rich person..
The process of being served at a bank consists of two parts—the time waiting in line and the time it takes to be served by the teller. What is the standard deviation of the total time (X+Y) it takes to be served at the bank?
When a construction possibilities frontier is bowed out, away from the origin the opportunity cost of a good.
Suppose that the nonlinear price discriminating monopoly in panel a of figure 12.4 can set three prices, depending on the quantity a consumer purchases. Where Q is its quantity, p is its price, and A is its level of advertising. Its marginal cost of ..
If the interest rate is 5%, what is the present discounted value of receiving $100 in two years? If the present discounted value of $100 received 3 years from now is $81.63, what is the interest rate?
Assume that a state government currently provides no child-care subsidies to working single parents, but that it now wants to adopt a plan that will encourage labor force participation among single parents. Discuss the likely effects on labor force p..
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