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(1) Suppose that on average, unemployed workers find jobs at the rate of 30% per period and employed workers loose jobs into unemployment at a rate of 2% per period. Assume the size of the labor force is forever fixed.
(2) There was a political coup in Zimbabwe and the new military dictatorship is promising to raise government expenditure on goods.
(Label all axes and curves carefully. Mark key points/coordinates)
Calculate the effect that hiring the new policemen would have on the social cost of crimes committed - calculate the effect it would have on the cost of trying and punishing offenders.
In an article titled, Gas prices dropping after last week's spike, that was published in The Atlanta Journal-Constitution newspaper on August 29, 2011," After a spike last week as Hurricane Irene threatened East Coast oil refineries, Atlanta gas pric..
Suppose David spends his income (I) on two goods, x and y, whose market prices are px and py, respectively. His preferences are represented by the utility function u (xy)= lnx + 2 ln y (MUx=1/x, MUy=2/y). Derive his demand functions for x and y.
Discuss the theory of efficiency wages and explain why it is profitable for companies to pay a wage rate higher than the equilibrium wage rate.
Do open market purchases actually work? What real effect do these purchases in the "real world", assuming economic variables, actually have on bond prices and interest rates?
Which leads to higher interest rates, which leads to higher output? Which leads to higher inflation? Which represents a more hawkish Fed? Which represents a more dovish Fed?
If oligopolists compete hard against each other.
Explain how does the empirical rule help to explain the ways in which values in a set of numerical data cluster and distribute.
Illustrate what would production at a point outside the production possibilities curve indicate? What must occur before the economy can attain such a level of production.
Should the government increase the minimum wage? What should be the GUIDELINES for an increase? What are some of the disadvantages of an increase?
Derive an expression for average cost. Derive an expression for marginal costs.
What are some examples of goods that the United States has comparative advantage in producing?
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