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Policy Discussion
Give opinion in 60 words on the followin:
Is placing monetary policy-decision making authority into the hands of one committee (the Federal Open Market Committee) too much power in too few hands? Why or why not? What is the political business cycle?
Consider the following model of international migration. The potential migrants originate in country 0, the source country. Suppose the distribution of skills in the source country uniform over the closed interval [1, 100]. That is, worker 1 has 1 ef..
Identify the risks related to information systems and suggest ways to minimize them.
Two countries, Haiti and the Dominican Republic, produce fruits and timber. Each island has a labor force of 1200 and the monthly productivity of each worker is as follow Basket of fruit Board feet of timber Haiti 10 5 Dominican Republic 30 10 a. Whi..
There are many “in-kind” versus cash payments made by the government to citizens such as food stamps, medical care, and public housing. Use an indifference curve/budget line diagram for “food” and “all other goods” to demonstrate that receiving food ..
The smith company made and sold 10,000 metal tables last year. When output was between 5,000 and 10,000 tables, its average variable cost was $24. In this output range, each table contributed 60% of its revenue to fixed cost and profit.
The United States, with about 300 million people, accounts for about 5% of the world population, but it accounts for over 20% of the world GDP and consumes over 20% of global resources. This means, on a per capita basis, Americans consume more than m..
Explain in a perfectly competitive market how a firm can make excess profit, incur loss and even shut down in the short run. (Draw graphs also)
The demand for good X has been estimated by QXd =12 - 3PX + 4PY. Suppose that good X sells at $2 per unit and good Y sells for $1 per unit. Calculate the own price elasticity. Please show steps.
For each option calculates the profit-maximizing price and quantity. Which, if any, of these compensation schemes would alter the deadweight loss from monopoly.
The minimax regret approach is
Consider the following game. You roll a six – sided die and each time you roll a 6, you get $30. For all other outcomes you pay $6. What is the expected value of the game?
Suppose you can hire your mechanic for up to six hours. The total benefit and total cost functions are B(H)=420H-40H^2 and C(H)=100H+120H^2. The corresponding formulas for marginal benefit and marginal cost are MB(H)=420-80H and MC(H)=100+240H. Write..
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