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What is the externality associated with an individual driving on a congested highway? How do tolls help alleviate this externality? How should tolls be set? (Hint: Would you always want the toll to be the same all day?)
A luxury good is defined as one for which:
When a monopolist reduces the quantity of output it produces and sells, the
In a market economy, every resource will tend to be paid according to its marginal product. Highly productive resources will command high prices, whereas less productive resources will command lower prices.
From one year to the next, a country's output rose from 4000 to 4500, its capital stock rose from 10,000 to 12,000, and its labor force declined from 2000 to 1750. Suppose aK = 0.3 and aN = 0.7. How much did productivity contribute to economic growth..
Suppose there is a $200 billion recessionary gap. If there are no taxes or imports to restore the economy back to potential GDP how much should government expenditure be changed if the marginal propensity to consume is 0.75? Does government expenditu..
According to the Congressional Budget Office estimates, output was 2.9% below potential output in the 4th quarter of 2014. The unemployment rate was 5.7%. What was the implied natural rate of unemployment?
Real Turf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the entire $35,000 purchase price. The loan would be repaid with four equal annual payments at an interest rate of 12%/year.
What would happen to GDP if the government hired unemployed workers, who had been amount $TR ain unemployment benefits, as government employees and now paid them $TR to do nothing? Explain.
Determine total cost of quality when there are no defectives. D = 0 and product quality is perfect. Determine total cost of quality when D = 90. No company could stay in business with D = 90, as will be apparent from calculations.
What is a difference between fiat and commodity money?
Jimmy deposits $4,000 now, $2,500 3 years from now, and $5,000 6 years from now. Interest is 5% for the first 3 years and 7% for the last 3 years. How much money will be in the fund at the end of 6 years? What is the present worth of the fund? What i..
Which of the following is the name of the power connector that is larger than the connector used for floppy diskette drives and that is commonly used with PATA drives?
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