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Mr. Dilatoriness has a PhD in economics, but is happily unemployed; he spends most of his time reading classical literature, art, and philosophy. He gets $3000 a week from his parents. His parents tired of his indolence, decide to cut down his weekly payment by 33.33% and ask him to join the family business at a wage rate of $20 an hour. Construct an income-leisure diagram showing Mr. Dilatoriness' situation before and after. Under what circumstances would Mr. Dilatoriness maximize his utility? (Evaluate all possible income-leisure combinations under both scenarios)
In its effort to reduce the time value of money, the Federal Reserve System began aggressively increasing the supply of money through Quantitative Easing. What is true and what is false about the above statement? Explain
q.your local grocery store offers a coupon that reduces the price of milk during the coming week. the regular retail
A producer of ballpoint pens has been purchasing ink from an ink supplier and is considering acquiring the ink supplier. Would the pen company be more or less likely to vertically integrate by buying the ink manufacturer if the government taxes ink? ..
discuss the change in the U.S. unemployment rate and inflation rate over the past year based on the Phillips curve concepts.
List reasons why California can be sustainably governed for the near-future effectively. List reasons why this is unlikely to be the case and why. That is, why California is impossible to govern and will become an increasingly unstable and unsustaina..
Assume that the demand for welding services is D(P) = 34-P/2, and the inverse supply function is PS(Q)= 4 + 10Q + Q2. This supply curve represents the long run supply curve of the incumbent firms already in the market, but there is free entry into th..
Assume that the inflation rates in 2010, 2011, and 2012 were 1%, 2%, and 3% respectively. During the same periods, nominal interest rates were 5%, 5%, and 6%, respectively. What are the ex-post real interest rates in 2010, 2011, and 2012?
In Country A the economy can be described in a series of multiple equations, where the desired consumption is Cd = 100 + 0.8Y - 500r - 0.5G, and desired investment is Id = 10 - 500r. Real money demand is Md/P = Y - 2000i. Other variables are πe = 0.0..
If the price of a fixed factor of production increased by 50%, what effect would this have on the marginal coast schedule facing a firm? a. None, because fixed costs don't affect marginal costs b. marginal cost would increase by 50%, c. marginal cost..
Collect data on the monetary base in the U.S. What was the size of the monetary base in August of 2007? What about in August of 2009? If the inflation tax is the ?M and the monetary base is our measure of M, then how much revenue was raised from the ..
Consider the monetary intertemporal model with investment. Analyze a temporary, positive TFP (z) shock and a permanent increase in Ms, respectively. How do the implications di?er? What assumptions on the economic behavior of households and ?rms do th..
The role of the prosecutor is characterized by broad discretion. At which step of criminal procedure, do you think the prosecutor's discretion is most influential? Why?
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