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Q1. A third country, Fun land, also produces food and drinks. In Fun land, one resource unit produces 8 tons of food and 6 tons of drinks. Which of the following is true about Funland, Foodland, and Drinkland?
Q2. Dave currently consumes 10 hot dogs and 6 Sodas per week. At his current consumption basket, his marginal utility for hot dogs is 5 and his marginal utility for sodas is 3. If the price of one hot dog is $1 and the price of one soda is $0.50, is Dave currently maximizing his utility? If not, how should he reallocate his spending in order to increase utility?
If the price of one good is four time the price of the other also the price of both double, Illustrate what effect does it have on the set of affordable bundles
Savings Mart sells patio furniture. Sales are seasonal with higher sales in the spring and summer quarter and lower sales during the fall and winter quarters. Forecast Savings mart sales of patio furniture for each quarter of 2010
Peggy Sue's cookies are the best in world, or so I hear. She has been offered a job through Cookie Monster, Inc., to come to work for them at $125,000 per year.
Identify the impact of the policy on Demand or Supply of the good(s) or service(s). Discuss the change(s). Draw a supply and demand graph to explain this change. Be sure to label your graph and clearly indicate the change of the curve.
Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country.
Explain why the R-squared from the regression from F test will always be at least as large as the R-square from the BP regression.
Describe the free trade equilibrium. Then compute and graph the following effects of an import quota that limits imports to 100 bags.
Illustrate what is the present worth of the planned expenditures at an interest rate of 10% every year
karens performance pizza is a small restraunt in ny that sells gluten free pizzas karens very tiny kitchen barely has enoug room for the three ovens in which her workers bake the pizzas karen signed a lease obligating her to pay the rent for the t..
Explain how meeting-competition clauses may serve as an enforcement mechanism for price-fixing agreements of cartels.
Does consumer surplus increase due to this price ceiling. Does social welfare increase as a result of the price ceiling.
Evaluate change in costs over period in real terms, first in 2004 dollars and m in 2005 dollars. Are your answers same. Explain why or why not.
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