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Why do we call mechanisms such as proportional income taxes and the welfare system automatic stabilizers ? Choose one of these mechanisms and explain carefully how and why it affects fluctuations in output.
A bank has $100 million in assets. 50% of the assets are interest sensitive. It has $80 million in liabilities of which 70% are interest sensitive. What would happen to bank's profits if the interest rates were to go up by 2%
Draw a supply and demand diagram 2. In equilibrium, how many packs of cigarettes are purchased? What is the equilibrium price? What is consumer surplus and producer surplus in equilibrium? 3. Suppose that a flat tax of $1.50 per unit is imposed on ..
Which areas in your life or parts of your past could be problematic for you as a beginning teacher? (my answer: I had spinal surgery two years ago and im still in pain. The doctors don't know what to do stop my pain. Stress and over working builds..
During a recession, the hotdog project will earn $12,000.00 and the Champaign project will lose $8,000.00. If the alternative is earning $3,000.00 on government Treasury bill (T-bill), what should the manager do? Why?
The market for carrots is comprised of two segments: fresh market carrots, which have excellent, uniform color and a small core, and processing carrots, which are larger than fresh market carrots but still have good flavor
Prove that the steady-state equilibrium is unique and globally (saddle-path) stable. What is the impact of a higher rate of technological progress?
What was the motivation behind the attack?
A bulldozer can be purchased for $380,000 and used for 6 years, when its salvage value is 15% of the first cost. Alternatively, it can be leased for $60,000 a year. Remember that lease payments occur at the start of the year.
Suppose that individual demand for a product is given by QD = 8000 - 10P. Marginal revenue is MR = 800 - 0.2Q, and marginal cost is constant at $20. There are no fixed costs. The firm is considering a quantity discount. The first 300 units can be ..
Copper Refiner Phelps Dodge purchased a model MTVS peristaltic pump for injecting antiscalant at ite nanofitration water conditioning plant. The cost of the pump was $950. If the chemical cost is $10 per day, determine the equivalent cost per mont..
A firm uses two variable inputs, labor, L, and raw materials, M, with typically shaped isoquants. It pays $20 per hour for L and $5 per unit for M. At the current mix of L and M, the marginal products of L and M are: MPL = 20 MPM = 4 Is the firm m..
Suppose the hourly wage is $10 and the price of each unit of capital is $25. The price of output is constant at $50 per unit. The production function is F(L,K)=L^1/2*K^1/2 If the current capital stock is fixed at 1,600 units, how much labor should..
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