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1. Why do economists say that discrimination is inherently inefficient and therefore will not occur in general?
2. Use the following information to answer these four questions:
a. What are the external costs per unit of output?
b. What level of output will be produced?
c. What level of output should be produced to achieve economic efficiency?
d. What is the value to society of correcting the externality?
Mr. Smith Wishes to sell a bond that has a face value of $1,000. The bond bears an interest rate (coupon rate) of 7.5%, with bond interest payable semiannually. Four years ago, the bond was purchased at $900.
Discuss the possible implications of making participation in social security voluntary. You can also use arguments of adverse selection and moral hazard covered in chapter 9
The short-run aggregate supply curve (SRAS) can be written as follows: Y = Yf b (p - pe), where Y = real GDP, Yf = full-employment real GDP, p = price level, pe = expected price level, and b is a positive coefficient. The SRAS can be re-written as..
The arrival time of a conservative tracer (chloride ion) was observed to take only 50 days. The soil had an organic carbon fraction of 1% and a porosity of 0.45. The soil density was 1.3 g/cm3.
Just The Fax, Inc. (JTF) has hired you as a consultant to analyze the demand for its line of telecommunications devices in 35 different market areas. The available data set includes observations on the number of thousands of units sold by JTF per ..
Use the diagrammatic analysis of this chapter to determine the effect on the current dollar/euro exchange rate, assuming current interest rates on dollar and euro deposits do not change.
Why was the inflation at the end of the Golden Age so disruptive? Do you think that even without the two oil shocks it would have become so powerful a force? Without the Vietnam War? Was it "in the cards," or was it the product of these two politi..
a refresher on how to calculate a riskier investment, when Company A has expected returns of $50,000 and standard diviation of $40,000. Company B has expected returns of $250,000 and standard deviation of $125,000.
A local car dealer is advertising a 24 month lease of a sport utility vehicle for 520 payable at the beginning of each month. the lease requires a 2500 down payment plus a 500 refundable security deposit that is refunded at the end of the 24 month..
According to the chief engineer at the Zodiac Company, Q = ALf Kf , where Q is the output rate, L is the rate of labor input, and K is the rate of capital input. Statistical analysis indicates that f = 0.8 and f = 0.3. The firm's owner claims the ..
A £10,000 deposit in a London bank in a year when the interest rate on pounds is 10 percent and the exchange rate moves from per pound to per pound.
Domino Pizzas decides to raise their price of their large Meatlovers supreme from $9.00 to $9.50. Their sales fall from 500 meatball subs to 460. Using the midpoint (or arc) formula, the elasticity of demand for Meatlovers supreme in absolute valu..
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