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1. Would increased cost inflation in the United States relative to its major trading partners likely increase or decrease the value of the U.S. dollar? Why?
2. If the domestic prices for traded goods rose 50 percent over 10 years in Japan and 100 percent over those same 10 years in the United States, what would happen to the yen/dollar exchange rate? Why?
What happens to the value of dollars in the market for foreign currency exchange?
How would your answer to part (a) change if the waste reduces the profits for the fishing industry by $40,000? (Assume, as before, that the firm could eliminate the waste at a cost of $60,000 per year.)
You-Will-Never-Pay-It-Off Loan Company lends you $150 on Monday, and you have to pay $250 after 15 days. If you kept the money for a year on the same terms, how much will you owe at the end of the year. Assume the company compounds money on a 15-day ..
PA = 9.6 - 0.08QA PCS = 4 - 0.05QCS where PA is the adult prices, PCS is the child/senior citizen price, QA is the adult quantity and QCS is the child/senior citizen quantity. Crowding is not a problem at the museum, and so managers consider a mar..
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(x; y) = lnx + 2lny (MUx = 1=x;MUy = 2=y). Repeat part (b) for the case in which px..
Why might you expect the marginal product of additional workers to diminish eventually?
Is the personal saving rate pretty stable over time? When did the personal saving rate start to fall in the United States?
The mayor considers engaging in direct quantity regulation (also called "command- and-control") and declares that each firm must engage in 42.5 units of pollution abate- ment. If the plants are controlled by the same firm, would it be socially optima..
Cory Manciagli is planning to retire in 20 years. Money can be deposited at 6% compounded quarterly. What quarterly deposit must be made at the end of each quarter until Corey retires so that he can make a withdrawal of $40,000 semiannually over t..
Comparing these opportunity costs, who should specialize in catching fish, and who should specialize in collecting coconuts?
What are common property resources; what economic incentive problems do they face; and how have some communities successfully overcome these problems?
Modeling the op amp as depicted in Fig. 8.44, compute the closed-loop gain and output impedance.
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