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1. If a political candidate said that if she were elected to Congress, she would work toward cutting federal government spending by one-third over the next four years, would she stand much chance of fulfilling her promise? Why or why not?
2. Discuss the pros and cons of having a high cigarette excise tax.
3. What additional goods and services do we expect from government today as opposed to 60 years ago?
A firm purchased some equipment at a very favourable price of $30,000. The equipment resulted in an annual net saving of $1,000 per year during the 8 years it was used. At the end of 8 years, the equipment was sold for $40,000. Assuming interest at 8..
What is the importance of measuring price fluctuations? How does the change in average price help explain the difference between nominal and real interest rates? (Macro economics, course number AB204)
Grocer orders 100 Grade A eggs from Farmer per month at market price for a period of three years. Farmer delivers Grade A eggs every month for one year, but Grocer began rejecting the eggs claiming that the market price for eggs was too high. Does th..
Elucidate what is the socially efficient quantity of the public goods. How much will each worker have to pay per unit to provide the socially efficient quantity.
According to crowding out hypothesis, an increase in ---- will lead to increase---- and later on a crowding out of (a decrease in)------
Explain how are presidential election outcomes related to the performance of the economy. What are the major factors that have affected U.S. household consumption since the recession in 2001.
Suppose two countries, A and B, with the same production function Y = K? L 1?? . The value of ? is 0.30, the growth rate of population is 2% and the depreciation rate is 5%. Compare both economies to the Golden Rule.
Solve for aggregate expenditures (AE) as a function of Y, and compute the equilibrium level of national income. Elucidate your equilibrium in a diagram with AE.
Both Dave and Caroline produce sweaters and socks. If Dave's opportunity cost of producing 1 sweater is 3 socks, and Caroline's opportunity cost of producing 1 sweater is 5 socks, then
Two identical countries, Nation A and Nation B, can each be described by a Keynesian-cross model. MPC is .9 in each nation. How much is government purchases multiplier for each nation.
The invention of a self-milking cow machine allows cows to milk themselves. Not only does this reduce the need for higher-cost human assistance in milking, but it also allows the cow to milk herself three times a day instead of two, leading to both a..
Assume that the price of x is $2 and the price of y is $1 and Brian has an income of $10. How much does he consume of each good? Assume Brian's income increases to 20$, calculate his demand for each good and explain whether Brian considers x and y to..
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