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Consider your decision whether to go skiing for the weekend. Suppose transportation, lift tickets, and accommodation for the weekend cost $300. Suppose also that restaurant food for the weekend will cost $75. Finally, suppose you have a weekend job that will have to miss if you go skiing, which pays you $120 (after tax) for the one weekend day that you work. What is the opportunity cost of going skiing? Do you need any other information before computing the opportunity cost?
At a price of $5 the profit-maximizing output for a perfectly competitive firm is 1,000 units per year. If the average total cost is $3 per unit, what will be the firm’s profit? If the average total cost is $6 per unit, what will be the firm’s profit..
Using the IS-MP-IRP framework, examine the effects of an expansionary fiscal policy (e.g. an increase in public spending (G) under a fixed and under a flexible exchange rate regime.
assume you have been hired as a managing consultant by a company to offer some advice that will help it make a
eighty five years ago americas 12-year great depression began with a crash. the bottom fell out of the stock market on
The government must raise tax revenue to pay for schools, police, etc. To do this, it can either tax groceries or meals at fancy restaurants. Which should it tax? Explain your reason.
The university states that it wants all its students to get As and Bs. If the goal is to raise overall grades to the B level or above, is this a good policy? Discuss this policy with respect to the problem of moral hazard.
The Landrum-Griffin Act of 1959 was passed in reaction to: Which of the following would not be considered a fringe benefit? The process by which unions and management negotiate a contract is called: Which of the following is true about mediation and ..
Eds building company has the production function q=20L - L^2. L is the quantity of labor Ed employs. 1. Find marginal production of labor and the average product of Labor 2. For what value of L is MPl greater than 0? For what values is it diminish..
An integrated, combined cycle power plant produces 285 MW of electricity by gasifying coal. The capital investment for the plant is $570 million, spread evenly over two years. The operating life of the plant is expected to be o20 year.
Does popular resentment against free trade simply re?ect economic illiteracy or more deep-seated political issues?
Suppose that the free trade price of a good is $12 and a 10% ad valorem tariff is put in place. Domestic production in a small country rises from 2000 units to 2300 units & domestic consumption falls from 2600 to 2500 units. What is producer surplus ..
Make a cash flow diagram or table showing yearly dollar values. What is the IRR of the investment (show all calculations) If companies’ discount rate is 12% would this be a good investment?
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