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In 2002, Los Angeles imposed a ban on new billboards, which was upheld by the courts in 2009. Owners of existing billboards did not oppose the ban. Why? What are the implications of the ban for producer surplus, consumer surplus, and welfare? Who are the producers and consumers in your analysis? How else does the ban affect welfare in Los Angeles?
During spring break, students have an elasticity of demand for a trip to Florida of -3. How much should an airline charge students for a ticket if the price it charges the general public is $360 Assume the general public has an elasticity of -2.
Apply the rule of 70 to solve the following problem. Real GDP per person in Mexico in 2005 was about $12,000 per person, while it was about $48,000 per person in the United States. If real GDP per person in Mexico grows at the rate of 10 percent p..
What does the conclusion reveal about her legacy to women and to men?
Is the importance of spillover effects larger or smaller under flexible exchange rates, as opposed to fixed ones? Is macroeconomic management easier under one regime than the other?
Suppose an economy's real GDP increased from $300 in 2009 to $400 in 2010. 1.What is the growth rate of its real GDP 2.If the growth rate of real GDP were to continue at the same rate you have calculated, how many years would it take for real GDP t..
Zero economic profits but positive accounting profits
The shopping trip to Klang, however, involves transport cost of RM 50 and travel time (valued at RM 50). Considering the economic costs of shopping, which option is better, i.e., shopping in Kuala Lumpur or shopping at Klang, Selangor?
Your company has asked you to analyze two mutually exclusive projects for the coming year. Project A will have an initial outlay of $7,200. Project B will cost $6,800. Both projects will last for three years. On the basis of the information regardi..
What are rational expectations? How do rational expectations differ from perfect foresight? Is monetary policy neutral under both assumptions?
Consider the same two firms as above with marginal costs 10 and 40, facing a demand p = 100 - q. a. Find the market price and quantities produced if firm 1 moved first, followed by firm 2 b. Find the market price and quantities produced if..
In order to increase their efficiency, one group of operators was imparted classroom training, and the other group was provided on the job training. After the training, the times to complete a certain job in minutes, was recorded for both the grou..
Once a free-trade equilibrium is reached, if Brazil imposes a tariff on imports, what will be the effect on its ratio of wages to return on capital? Explain why.
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