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1. The government is considering the adoption of a higher standard of success in tests for pharmaceuticals that will be sold in the United States. Suppose the benefits of the regulation were 1,000 lives saved per year. Would you support adoption of the regulation? Explain.
2. Why is national defense called a public good?
Consider a business cycle theory that combines the classical IS-LM model with the assumption that temporary changes in government purchases are the main source of cyclical fluctuations. How well would this theory explain the observed cyclical beha..
Dan loves pizza. His firm, Dan’s Pizza Company, makes frozen pizzas. The market price of a pizza is $15, and Dan is a price taker. His daily cost of making pizzas is C(Q) = 5Q + Q2/80, and his marginal cost is MC = 5 + Q/40.has an avoidable fixed cos..
Consider the following preliminary data from 2008: ($ in billions) GDP $14264.60 Factor Payments from Abroad $798.30 Factor Payments to Abroad $665.10 Consumption of Fixed Capital $1832.30 Indirest Business Taxes $1118.90 Corporate Profits and Relat..
A developer buys several undeveloped parcels of land on a beachfront. At a later date, the state passes a law greatly restricting coastal development.
The income tax system in a country requires each citizen to pay 10% of income on earnings up to $40,000, and then pay 20% on any earnings over $40,000. If an individual has an income of $92350, then what is his average tax rate, in percentage term..
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.
There are two firms that engage with a Cournot competition with the inverse demand curve given by P=1000-5Q. Suppose the two firms have constant marginal costs $5 and $10. a). Write down the profit function for each firmb). Firm 2 produces 10 units, ..
consider 2 countries avataria and twilightia which can be described by the solow model. avataria has a capital-labor
Economist in Funlandia, a closed economy, have collected the following information about the econonmy for a particular year. Y= 10,000 C= 6,000 T=1,500 G= 1,700 The economists also estimate that the investment function is
(Fiat Money) Most economists believe that the better fiat money serves as a store of value, the more acceptable it is. What does this statement mean? How could people lose faith in money?
Domino Sugar Is considering the purchase of Fisher Honey Co. for $100 million. Based on information obtained from 500 supermarkets around the country, when 1 lb. of Domino Sugar went o sale from $2.00 to $1.50,
Atmospheric reactions in hydrometeors (rain, fog, mist, and dew) produce aldehydes and ketones. Consider the conversion of pyruvic acid to acetaldehyde in fog droplets. The reaction is CH3-C(O)-COOH (g) → CH3CHO (g) + CO2 (g).
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