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In a short essay of at least two paragraphs, first explain what you think the benefits of requiring a balanced budget would be. If you don't see any benefit to such a requirement, then explain that instead and fully explain your reasons to support your opinion. In the second paragraph, analyze the effects the national debt has on our economy. Your reasons must be logical and detailed and must support your opinion.
Consider a monetary policy rule that has the following parameter values: r ¯ = 2%, m ¯ = 1/2, and π ¯ = 2%. (a) Obtain data on the inflation rate for the most recent 12-month period possible (you should briefly document how and where you obtained the..
A simple model of search. Consider an agent who lives two periods. He is unemployed at the beginning of the first period and has a wage offer of w. If he accepts the wage offer w, he will work forever at that wage. How much would the agent value toda..
What is adverse selection? How do these two concepts relate to the market for insurance and healthcare?
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $30 million per year and a variable cost of $4 per bag no matter how many bags are produced.a. If this firm kept on ..
A friend of yours just bought a new sports car with a $4,000 down payment, and her $25,000 car loan is financed at an interest rate of 0.25% per month for 48 months. After 2 years, the "Blue Book" value of her vehicle in the used-car marketplace is $..
q1. the sales tax rate applied to all purchases within a state was 0.04 4 percent throughout 2006 however increased to
Sketch the indifference curves implied by each of the following statements:
Ten firms compete in a market to sell product X. The total sales of all firms selling the product are $2,000,000. Ranking the firms’ sales from highest to lowest, we find the top four firms’ sales to be $260,000, $220,000, $150,000, and $130,000, res..
You are the commissioner of the National Hockey League. You have been called to testify at an antitrust case against the NHL. Argue that (a) the NHL is not a monopoly and (b) even if it is a monopoly, it is a natural monopoly. Be sure to carefully ex..
A firm†TM s demand function is defined as Q = 30 - 2P. a) Use this demand function to calculate total revenue when price is equal to 10 and when price is equal to 11. b) What is marginal revenue equal to between P=10 and P=11?
q.a firm is using 30 units of labor and 20 units of capital to produce 4000 units of output. at this combination the
Describe the concept of derived demand. Discuss the link between derived demand and unemployment by providing an example from our economy.
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