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Over a period of two years, average income in Collegetown increased from $1,000 to $1,400. During the same period, the quantity of pizza demanded increased from 6,000 per month to 10,000 per month. Assuming everything else constant, use the midpoint method to calculate (show your work) the income elasticity of demand for pizza in Collegetown.
Should the United States pull out of NAFTA? Explain why we should or why we should not. A group at your school has called a meeting to discuss a boycott of the college bookstore if it continues selling clothing made with sweatshop labor. Would you su..
Consider a bond that has a present value of $1,000. If the annual rate of interest is 7 percent, the future value of the bond after a year is
Discuss how production based on comparative advantage can increase domestic employment in India.
How can we measure the opportunity cost of producing a good? Using a bowed outward production possibilities curve between ice cream and hammers, identify graphically the opportunity cost of obtaining an additional hammer. Does economic growth elimina..
You manage a resort and are considering installing one of two different vending machines, Soda or Candy. The net cash flow for each machine stays the same for each of the four years that it lasts. Key information about each machine is below. Cash flo..
Consider a couple's decision about how many children to have. Assume that over a lifetime a couple has 200,000 hours of time to either work or raise children.
Why US banking system is known as fractional Reserve? Why modern ban king systems are known as fractional reserve? What are the characteristics of frictional Reserve banking?
John has the utility function U = Min{x,y}. The price of x is 1, the price of y is 1, and his income is 50. a) Find John’s optimal bundle. b) Suppose now there is a discount for the first 20 units of x John buys such that px=0.5 for those first 20 un..
Nature's Green, Inc., a manufacturer of alfalfa tablets sold in health-food stores, currently operates just outside of Meno, California. Nature's Green is considering two alternative proposals for expansion, because it has run out of acreage to grow ..
Which of the following is not part of the index of leading economic indicators?
In the morning newspaper, you read an article stating that as a result of the instant monopolization of the local cell phone market, consumers’ surplus fell by $2,000 due to lower equilibrium output, and by $3,000 due to higher prices charged in the ..
Pat and Chris brew beer and make pizza. Pat takes 4 hours to brew a gallon of beer and 2 hours to make pizza. Chris takes 6 hours to brew a gallon of beer and 4 hours to make a pizza, what is each persons opportunity cost of making pizza?
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