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Which counts in the government spending category of GDP?
i. City J pays $2 million for garbage service
ii. The federal government pays $2 million in social security payments
iii. A state government pays $2 million to unemployed workers
iv. The federal government paid $2 million to build a new road
The inverse demand that duopoly quantity-setting firms faces is p = 90 - 2q1 - 2q2. Firm #1 has no marginal cost of production, while firm #2 has a marginal cost of $30. How much does each firm produce if they move simultaneously? What is the equ..
Which of the following best explains why a $7 billion tax cut can lead to a $9 billion increase in consumer spending in the short run?
In tight housing markets rent controls are often applied to hold price of housing to a reasonable level. How does this policy affect the relative gains of tenants and landlords and the allocative function of prices— (answers) it prevents landlords fr..
What is adverse selection? How do these two concepts relate to the market for insurance and healthcare?
The main reason why there is no support amongst economists to balance the budget every year (Balance budget amendment to the constitution) is that doing so will----
Assume that the demand for a product X is heavily influenced by the price of another product Y (Py), and the income of consumers (I). The cross-price elasticity of X with respect to Y is exy = 1.25, and the income elasticity is eI = 2. Are X and Y co..
Discuss the importance of a well-developed compensation plan in attracting as well as retaining good employees as well as how to keep those plans from "working too well."
Describe the effects of the sugar quota. In 2005, imports were limited to 5.3 billion pounds, which pushed the domestic price to 27 cents per pound. Suppose imports were expanded to 10 billion pounds. What would be the new U.S. domestic price? How mu..
q. real wages and productivity-are workers paychecks keeping up? over the long run historically real wages produce
Find the optimal (x, y, λ) for max u(x,y)= kx^ay^b s.t. PxX+PyY = m, in terms of the parameters of the model. Prove that the optimal (x,y, λ) is indeed a maximum. Comment
Using the appropriate graph, carefully describe why utility maximizing households would most likely chose to have fewer children as their income grows.
Explain how does the market system efficiently perform the functions of communication, coordination and motivation in the distribution of resouces to comsumers.
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