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Q1. Suppose the parliament passes legislation making it more difficult for firms to fire workers (e.g. law requiring severance pay to fired workers) if this legislation reduces the rate of job separation without affecting the rate of job finding, how would the natural rate of unemployment change? Do you think that it is plausible that legislation would not affect the rate of job finding? Why or why not?
Q2. The supply is Nerf balls Qs = -100,000 + 8,000p and the demand is Qd = 140,000 + 2Y - 7000p, where Q = Nerf balls per month, p is the price (in cents) of one Nerf ball, and Y is income in dollars. Initially, Y is $30,000. The government imposes a tax of 10 cents per Nerf ball. What percent of the tax is borne by buyers? If income rises to $40,000, how much will tax revenue rise?
Jason likes to buy guitars and trumpets. His marginal utility of guitars is given by MUG = (7T0.3)/(10G0.3) and his marginal utility for trumpets is given by MUT = (3G0.7)/(10T0.7), where G is the number of guitars Jason buys and T is the number of t..
The government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially before multiplier effects.
Illustrate the opportunity cost between the two goods is always constant. Which of the following combinations of the two goods, X and Y, is it possible for the economy can produce?
When a company's depreciation is larger than its gross investment, net investment becomes negative and the firm's capital stock decreases.
If Fly Right were to go out of business, it would be able to rent its plane to another airline for $30,000. Which airline has lower costs.
Ilustrate what is the market price and level of each firm's output in the short run. How much profit does each firm make.
Calculate the elasticity for each variable at that point and briefly comment on what information this gives you for each variable. Should this firm be concerned if macroeconomic forecasters predict a recession? Explain your answer.
7) in 1988, the average wage rate was 9.45 an hour and in 2008 the average wage rate was 18 an hour. The CPI in 1988 was 118.3 and in 2008 it was 215.3. which is real wage rate is higher?
q1. give examples of 7 elements of client value systems time cost quality environment impact resaleexchange self
Calculating MPC, In one year, a consumer's income increase by $400 and her consumption increases by $120. Her marginal propensity to consume is equal to.
Assume that health production is subject to diminishing returns and that each unit of health care employed entails a constant rate of iatrogenic (medically caused) disease. Would product of health function eventually bend downward
The production function is Q = L^0.25*K^0.25 and the respective unit input prices for L and K are w=4 and r=9. Derive the long-run least cost as a function of Q, and derive the marginal cost and average cost to characterize the shape of the total ..
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