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Suppose that the cross-elasticity of demand between McIntosh and Golden Delicious apples is 0.8, between apples and apple juice is 0.5, between apples and cheese is 0.4, and between apples and beer is 0.1. What can you say about the relationship between each set of commodities?
The money multiplier process gives us an idea of the maximum possible expansion in the economy's money supply. Can you think of a reason why the money supply might not expand to the maximum possible extent Think of some of the events that have occ..
Presume the federal government gives every U.S. household a $5000 one-time federal income tax refund this year. Describe the effect, if any, the refund might have on unemployment according to each of the following consumption theories: Which of the t..
If Appe were to build a balanced, scorecard, what two objectives do you think should be included in the learning and growth perspective?
What is the average product of labor, given that the level of labor equals 10, total output equals 1200 and the marginal product of labor equals 200?
Use the classical (RBC) model
Given the asymmetric information situation a prospective employer faces in hiring from this labor pool, what is the average salary that they would pay without a signal?
Suppose an economy is experiencing a recessionary gap. Explain the state of the economy (focus on employment/unemployment and inflation). Utilizing the full repertoire known to you, devise an appropriate mixture of fiscal and monetary policies to red..
Some games of strategy are cooperative. One example is deciding which side of the road to drive on. It doesn't matter which side it is as long as everyone chooses the same side. Otherwise, everyone may get hurt.
In developing a subdivision, the developer is required to build the roads to the city building code specifications and to deposit an amount which will allow the city to repave the roads every four years for an indefinite period of time. The costs ..
Find the first order conditions and find the asset demand function for a when utility takes the log form, as in 1B above.
If your company has a payment of 200 million euros due one year from now, how would you hedge the foreign exchange risk in this payment with 125,000-euro futures contracts?
The Federal Reserve is in charge of handling monetary policy for the U.S. List and describe the tools the Federal Reserve would institute if it needed to slow down the economy because it believes that inflation is too high or that it will soon become..
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