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For each of the following pairs of items, say if they are perfect substitutes, imperfect substitutes, or perfect complements and draw an indifference curve map.
a) Cell phones; cell phone chargers.
b) NY state apples; Washington state apples.
c) milk; morning cereal.
Assume some pencil workers switch to jobs in the growing computer industry
A proposal has been made for improving the downtown area of a small town. The plan calls for banning vehicular traffic on the main street and turning this street into a pedestrian mall with tree plantings and other beautification features.
Kris borrows some money in her senior year the buy a new car. The car dealership allows her to defer payments for 12 months, and Kris makes 48 end-of-month payments thereafter. If the original note loan) is for $28,000 and interest is 0.5% per month ..
Medium household income in County C is $54,021. Medium household income in Country D is $28,739. In County C, 17.4 percent of residents smoke. In County D, 28.4 percent of residents smoke. What is the arc income elasticity of demand for tobacco use?
An increase in the aggregate demand for goods and services has a larger impact on output ________ and a larger impact on the price level ________.
Does this policy change affect growth according to the Solow model (in terms of levels, growth rates or both)? If yes - which variable(s) does it affect? If no, does it affect growth anyway? Why or why not? The government introduces a consumption tax..
The required reserves of a bank equals it's __________ the required reserve ratio.
Under the responsibility scheme proposed by the Hong Kong government, households will be charged for solid waste disposal. Is this charge justifiable from an economics point of view? Explain your answer with a diagram. Is it fair to charge all househ..
A tax system achieves equity when:
According to a Wall Street Journal article "MCI, in New Phone War Skirmish, Files Suit over AT&T Ad Claims," MCI was upset with AT&T over allegedly false claims that AT&T's service is cheaper than MCI's. Suppose that the typical consumer is a small b..
How is the PCE calculated? What is the difference between the PCE and the GDP deflator? What is the difference between the PCE and the core PCE?
Vermont is one of many states that passed Certificate of Need (CON) laws in the 1970s. Many interest groups are in favor of repealing all CON regulations. Assuming perfect markets, describe in one page or less, using graphs where appropriate, the eff..
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