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What is the exchange rate? How is it determined? What role do adjustments in the exchange rate play in ensuring that capital inflows equal the trade deficit?
The only video rental club available to you charges $4 per movie per day. If your demand curve for movie rentals is given by P=20-2Q, where P is the rental price ($/day) and Q is the quantity demanded (movies per year)
Explain what we mean by "money" , and taking a "narrow" definition of this measure, how a fractional reserve banking system can take a $1000 of "high-powered" money - like cash - and expand the overall money supply
According to classical macroeconomic theory, monetary policy shocks are "neutral." Explain what this means. Based on that theory, how would a 5% increase in a nation's money supply affect its real wage rate (W/P), all else equal
The purchase price of a natural gas- fired commercial boiler (capacity X) was $181,000 eight years ago. Another boiler of the same basic design, except with capacity 1.42X, is currently being considered for purchase. If it is purchased, some optio..
Autie Frannie wants to help pay for her twin nephews to attend a private school. She intends to send a cheque for $2,000 at the end of each of the next eight years to apply to the cost of schooling. a) If general price inflation, as well as tuiti..
Kennedy Air Services is now in the final year of a project. The equipment originally cost $24 million, of which 65% has been depreciated. Kennedy can sell the used equipment today for $6 million, and its tax rate is 35%. What is the equipment's af..
Suppose that they are thinking of each specializing completely in the area in which they have a comparative advantage, and then trading at a rate of 2.5 pounds of potatoes for 1 chicken, would they each be better off. Which person has comparative ..
Plot the Lorenz curve for income after taxes have been levied. Note that the total income will now be less than 100 and so you will have to compute the quintile shares using a new total.
The research and development division of a large corporation is considering the purchase of a new tunneling X-ray microscope for $200,000. The projected net benefits from gains in materials engineering is projected to be $45,000.
Suppose that Bill has an income of $4000/month and spends his money on housing and food. Housing costs $1.50/sqft per month and food is $1. Suppose that Bill is given a housing voucher equal to $750.
Evaluate the role of public opinion, interest groups, and political parties in the political system.
Find the equilibrium price and quantity in the black market.
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