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a) In your Advanced Microeconomics course you must do a group project with three other students. All will receive the same grade. What potential problem, discussed in the chapter, may you encounter?
b) Public Broadcasting Stations (PBS both radio and television) regularly solicit contributions from listeners and viewers. Only about 11% of the viewers/listeners contribute. Why?
c) Your friend applied for and was offered a one bedroom apartment in the Red Hook Houses, a public housing project, in Brooklyn. Is this a public good?
An industry consists of a dominant firm with costs C(Qd) = Qd and 8 identical fringe firms, each with costs c(q) = 1 + q^2. Market demand is Q = 20 - p. What is the supply schedule for a fringe firm in the long run? Sketch the supply. (You would need..
Elucidate how the necessity of a good and the availability of substitutes impact the price elasticity of the product. The product is beef.
Explain how natural monopolies cause market failure? How is the deadweight loss associated with this form of market failure measured? What is a typical form of government intervention to correct it? How effective is this type of intervention? Use the..
The following events happens in order: 1. Fed bought $100M in bonds from Bank A 2. Bank A then use $40M to buy bonds from bank B, and lend out $60M to a person A 3. Bank B holds everything as excess reserves. Person A withdraw $5M. Calculate the chan..
A 30 year bond has a principle amount of $1000 and a coupon rate of 5% per year, interest payments are paid semi-annually. If the maturity date from now is exactly 10 years and the current market rate for the same bond is 12% per year, compounded sem..
Consider a market with a demand curve of P=10-Q and a supply curve of P=Q. Before the imposition of a tax, equilibrium quantity is 5, and equilibrium price is $5 (verify this). If a tax of $5 per unit is placed on this market, quantity traded falls t..
Find out the Nash equilibrium prices of the procedures at the hospitals. find out the profit maximizing monopoly prices of the procedure at each hospital.
Total revenue will increase for which of the following?
Assume that wages for data entry clerks are lower in India than in the United States. Does this mean that data entry jobs in the United States will be outsourced to India? Explain.
The gross domestic product (GDP) of the United States is defined as the ---------------, all --------------, ----------------- in a given period of time. Rajiv's employer as deigned him to provide consulting services to an Australian firm that's open..
Consider the following economy: C=3,I=1.5,G =2.65,T=2,f=0.5,d = 0.1,mpc =0.8. Write the mathematical expression of the consumption function. Write the mathematical expression of the investment function. Find the IS curve and graph it.
When computing the p-value for a two-tailed hypothesis test, we need to
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