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The CPI for Zippa Republic was 111.9 in December 2007, 114.6 in December 2008, and 116.2 in December 2009.
a. What do these numbers tell you about the price level in these three years?
b. Calculate the inflation rates for the years ended December 2008 and December 2009.
c. How did the inflation rate change in 2009?
d. Why might these CPI numbers be biased?
e. How do alternative price indexes help to avoid the bias in the CPI numbers?
Is there a parallel among diminishing marginal utility in consumption and diminishing returns in productio.
Can you illustrate through using supply and demand graphs what happens to the equilibrium price and quantity in each of the following conditions.
Nina is able to select her weekly work hours. When a new bridge opens up, it cuts one hour off Nina's total daily commute to work. If both leisure and income are normal goods, what is the effect of the shorter commute on Nina's work time
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Is the compensation scheme at your present place of employment consistent with a reasonable solution to the agent principal problem?
Explain the alternative adjustment path that would result from the stimulus and compare it to the adjustment that would have occurred if the government had not responded to the recession.
List four reasons why analyzing the economy is not as precise as the multiplier model makes it appear.
The supply and demand equations for a hypothetical perfectly competitive market are given through QS=-100+3P and QD = 500 - 2P.
the other an approach that calls for more intervention to improve the working of the market and the well being of society. Explain how these remain the two chief competing policy positions that divide more conservative from more liberal policies i..
Assume that the unemployment benefits provided by the private sector (firms) are increased permanently, please answer the following questions.
Illustrate the notion that people are rational respond to incentives consider an experiment conducted by researchers at St. Luke's Roosevelt Hospital in New York City.
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