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1. Why do government budget deficits grow during recessions?
2. Taxes can be progressive, regressive, or proportional. Define each and briefly offer an argument for why income taxes are usually progressive.
Find the linear supply function satisfying the following conditions: when the price is $4, there will be no supply. When the price is $11, there will be 600 units supplied.
Suppose that a firm's only viable input is labor. The firm increases the number of employees from four to five, thereby causing weekly output to rise by two units and total costs to increase from $3,000 per week to $3,300 per week.
A monopolist's inverse demand function is P = 150 - 3Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC1(Q1) = 6Q1, and the marginal cost of producing at facility 2 is MC2(Q2) = 2Q2. Provide the eq..
Now suppose world relative demand takes the following form: Demand for apples/demand for bananas = price of bananas/price of apples.
Let a firm's long-run production function be Q= 1/10LK +3L^2K-1/10L^3K Assume that in the short-run the firm's labour input is fixed at 10 units. a) What is the firm's short-run production function? b) What are the short-run average and marginal prod..
What is the production function if L and K are perfect substitutes and each unit of q requires 1 unit of L or 1 unit of K (or a combination of these inputs that adds up to 1)?
How should the food be allocated if they want to maximise their use/utility If person no. 2 needs a utilitylevel of at least 5 to survive, how should the food be allocated if they still want to maximise their use, without letting person no. 2 die.
Unfortunately, the BPAs dams block the paths of migrating fish, contributing to the decline of several species. Suppose that BPA spends $100 million to make its hydroelectric dams less hazardous for migrating fish. Who will bear the cost of this p..
For one application, the nitrate concentration y (milligrams per liter) in a water sample collected after a heavy rainfall was modeled as a function of water source (groundwater, subsurface ?ow, or overground ?ow).
To demonstrate that a utility function that is a monotonic transformation of another utility function gives that same first-order conditions and hence the same demand functions, multiply the utility function U = U(X,Y) by a constant
Demand for flower bouquets in a suburban town is described by: QD = 50 - 5 P + 2 Y, where Q is quantity, P is price per unit, and Y is an index of consumer income. Similarly, supply is described by QS = 10 P - 5. a) If Y = 100, what is equilibrium..
Transamerica Visa Credit Card to our policyholders. For those policyholders whose anniversary date has occurred in past six months; an early statement and offering can be done once we have cycled those policyholders with upcoming anniversary date..
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