Economics

3- Suppose the hourly wage is $10 and the price of each unit of capital is $25.

3- 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(K, E) = K ^0.5 E^0.5 …

3- The law of increasing costs holds that the opportunity cost: Question 10 opti

3- The law of increasing costs holds that the opportunity cost: Question 10 options: a- of a good decreases as the quantity of the good produced increases. b- of a good is proport…

3- The national statistics office announces that 139,455,000 were employed, 15,2

3- The national statistics office announces that 139,455,000 were employed, 15,260,000 were unemployed and 82,614,000 were not in the labor force. Calculate: a. Labor force b. Pop…

3-16. A biotech firm is considering abandoning its old plant, built 23 years ago

3-16. A biotech firm is considering abandoning its old plant, built 23 years ago, and constructing a new facility that has 50% more square footage. The original cost of the old fa…

3-2 Opportunity Cost of Renting You currently pay $10,000 per year in rent to a

3-2 Opportunity Cost of Renting You currently pay $10,000 per year in rent to a landlord for a $100,000 house, which you are considering purchasing. You can qualify for a loan of …

3-2 Opportunity Cost of Renting You currently pay $10,000 per year in rent to a

3-2 Opportunity Cost of Renting You currently pay $10,000 per year in rent to a landlord for a $100,000 house, which you are considering purchasing. You can qualify for a loan of …

3-25. Your FICO score is a commonly used measure of credit risk (see www.myfico.

3-25. Your FICO score is a commonly used measure of credit risk (see www.myfico.com). A score of 850 is the best (highest) score possible. Thirty-five percent of the FICO score is…

3-3 Machine \"A\" has an initial cost of $50,000, an estimated service period of

3-3 Machine "A" has an initial cost of $50,000, an estimated service period of 10 years, and an estimated salvage value of S10,000 at the end of the 10 years. Estimated end-of-yea…

3-3 Opportunity Cost of Steel Your firm usually uses about 200 to 300 tons of st

3-3 Opportunity Cost of Steel Your firm usually uses about 200 to 300 tons of steel per year. Last year, you purchased 100 tons more steel than needed (at a price of $200 per ton)…

3-3 Opportunity Cost of Steel Your firm usually uses about 200 to 300 tons of st

3-3 Opportunity Cost of Steel Your firm usually uses about 200 to 300 tons of steel per year. Last year, you purchased 100 tons more steel than needed (at a price of $200 per ton)…

3-4. A large electric utility company releases 62 million tons of greenhouse gas

3-4. A large electric utility company releases 62 million tons of greenhouse gases (mostly carbon dioxide) into the environment each year. This company has committed to spending $…

3-5. Calculation and application of elasticity. (15 points) a) Let\'s consider t

3-5. Calculation and application of elasticity. (15 points) a) Let's consider two smokers A and B who, following a 20% decrease in the price of cigarettes, increase their smoking …

3-6 Some writers argue that planning messages wastes time because they inevitabl

3-6 Some writers argue that planning messages wastes time because they inevitably change their plans as the go along. How could you respond to this argument? Briefly explain. 3-7 …

3-6. A monopolist is seeking to price discriminate by segregating the market. Th

3-6. A monopolist is seeking to price discriminate by segregating the market. The demand in each market is given as follows: Market A: P = 193 - 1Q Market B: P = 101 - 4Q The mono…

3-7. A monopolist is seeking to price discriminate by segregating the market. Th

3-7. A monopolist is seeking to price discriminate by segregating the market. The demand in each market is given as follows: Market A: P = 148 - 2Q Market B: P = 176 - 4Q The mono…

3-8. Strict Product Liability. Medicis Pharmaceutical Corp. makes Solodyn, a pre

3-8. Strict Product Liability. Medicis Pharmaceutical Corp. makes Solodyn, a prescription oral antibiotic. Medicis warns physicians that "autoimmune syndromes, including drug- ind…

3-9. A monopolist is seeking to price discriminate by segregating the market. Th

3-9. A monopolist is seeking to price discriminate by segregating the market. The demand in each market is given as follows: Market A: P = 152 - 1Q Market B: P = 124 - 2Q The mono…

3-All of the following are examples of capital except : Question 3 options: a- t

3-All of the following are examples of capital except: Question 3 options: a- the robot used to help produce your car. b- a computer used by your professor to write this exam. c- …

3-Which of the following is a positive statement? A. When the price of a good go

3-Which of the following is a positive statement? A. When the price of a good goes up, consumers buyless of it. B. When the price of a good goes up, firms producemore of it. C. Wh…

3. (**) a. Suppose Y1 = 100,Y2 = 200, r = 0.1. Suppose a borrowing constraint ex

3. (**) a. Suppose Y1 = 100,Y2 = 200, r = 0.1. Suppose a borrowing constraint exists such that the consumer cannot borrow in period 1. Assume that in the absence of the constraint…

3. (10 poins) In each of the following cases, explain whether you think the situ

3. (10 poins) In each of the following cases, explain whether you think the situation is efficient or not. If it is not efficient, why not? What actions would make the situation e…

3. (10 points) Consider an economy that produced computers, wheat and beer. The

3. (10 points) Consider an economy that produced computers, wheat and beer. The following table describes the prices and quantities of goods that this economy produced on years Pr…

3. (10 points) Suppose that two players are playing the following game. Player 1

3. (10 points) Suppose that two players are playing the following game. Player 1 can choose either Top or Bottom, and Player 2 can choose either Left or Right. The payoffs are giv…

3. (10 points) Suppose the civilian non-institutionalized population equals 400

3. (10 points) Suppose the civilian non-institutionalized population equals 400 million people; the number of officially classified unemployed persons equals 40 million; the numbe…

3. (10 points) The diagram below shows the short run demand curve (D), marginal

3. (10 points) The diagram below shows the short run demand curve (D), marginal revenue curve (MR), average total cost curve (ATC), and marginal cost curve (MC) for a firm in a mo…

3. (10 points) Your firm, MDF Corp., is assisting the Marlboro Man in marketing

3. (10 points) Your firm, MDF Corp., is assisting the Marlboro Man in marketing their corn production. Yo are given the following supply function for the Southern regional corn ma…

3. (10 pts. total) This problem is based on a Market for Lemons experiment that

3. (10 pts. total) This problem is based on a Market for Lemons experiment that was conducted in a class. Used car sellers and buyers tried to agree on a price for cars. Sellers k…

3. (15 points) The following graph shows the cost curves for a typical firm. 8 2

3. (15 points) The following graph shows the cost curves for a typical firm. 8 20 12 20 40 60 80 Quantity (units per day) a. Identify the following curves (A, B, C): i Marginal Co…

3. (16) Principal-agent problem This question relates to the form of employment

3. (16) Principal-agent problem This question relates to the form of employment contract between a real estate agent and her real estate agency (like Coldwell-Banker or Century 21…

3. (18 points) Suppose that the marginal cost of producing output, q, in the sho

3. (18 points) Suppose that the marginal cost of producing output, q, in the short-run for a competitive firm is MC = 10 + 8q. The market price of the firm’s product is $25. a. (2…

3. (18 points] Immigration facts (both past and current) indicate that there are

3. (18 points] Immigration facts (both past and current) indicate that there are many individuals who move from one country to another. Trade models generally assume that goods ar…

3. (2 pts.) From the information below please calculate the marginal utility tha

3. (2 pts.) From the information below please calculate the marginal utility that this a. person receives from owning additional pairs of jeans. Number of Jeans Total Utility 0 15…

3. (20 points) Consider the following simple version of a two-player poker game.

3. (20 points) Consider the following simple version of a two-player poker game. Each player may be one of two types, strong (S) or weak (W). Each player knows his type, but not t…

3. (20 points) Currently, Alaska has no state income tax. One option being consi

3. (20 points) Currently, Alaska has no state income tax. One option being considered by the governor, Bill Walker, is to close the state budget deficit by instituting a 7.5% prop…

3. (20 points) Maryam agrees to lend Zain $400,000 to buy computers for his cons

3. (20 points) Maryam agrees to lend Zain $400,000 to buy computers for his consulting firm. They agree to a nominal interest rate of 6%. Both expect the inflation rate to be 2%. …

3. (20 points) Refer to the following graph for the Home country before and afte

3. (20 points) Refer to the following graph for the Home country before and after a tariff. The home producer of the good is a monopolist prior to trade Price $1100 MC $320 $250 $…

3. (20 points) Transportation: What type of vehicle will you have? What kind of

3. (20 points) Transportation: What type of vehicle will you have? What kind of down payment did you have to pay? What are the payments? Include calculations of the loan amount an…

3. (24 points) Suppose a competitive firm can sell its output for $5 per unit. T

3. (24 points) Suppose a competitive firm can sell its output for $5 per unit. The following table gives the firm’s short run production function. Labor Output 0 0 1 60 2 130 3 18…

3. (24 total points) Suppose there are two consumers, A and B, and two goods, X

3. (24 total points) Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A is given an initial endowment of 2 units of good X and 3 units of good Y. Consume…

3. (25 points) Company X is operating in a monopolistically competitive market w

3. (25 points) Company X is operating in a monopolistically competitive market with a total cost of TC (Q) = 1000+4Q2. The demand function faced by X is given by P(Q) = 600-100Q. …

3. (3 points total) Identify the nature of the “pitfall” to sound economic reaso

3. (3 points total) Identify the nature of the “pitfall” to sound economic reasoning represented by the following circumstances: a) (1 point) You are attending a concert and recog…

3. (30 points) Consider an economy that produces only two goods: oil and gasolin

3. (30 points) Consider an economy that produces only two goods: oil and gasoline. In this economy, the technology of producing gasoline involves using oil as an input. Olive’s Oi…

3. (30 pts) Baseball, Alex a Consider the situation where there are 2 dominant s

3. (30 pts) Baseball, Alex a Consider the situation where there are 2 dominant sluggers in Major League th nd Ba rry. Each is trying to increase his legacy to be among the greates…

3. (4 points) Indicate whether each of the following situations is likely to pro

3. (4 points) Indicate whether each of the following situations is likely to produce quasirents, differential rents, scarcity rents, and/or resource rents (note: more than one cat…

3. (4 points) Quantitative easing is the central bank\'s open market purchases o

3. (4 points) Quantitative easing is the central bank's open market purchases of long-term government bonds. a. Use the AD-AS model to demonstrate the effect of quantitative easin…

3. (4 points) Suppose there are two firms producing 6 units of pollution each. T

3. (4 points) Suppose there are two firms producing 6 units of pollution each. The govem decides that they want to reduce the total pollution to 6 units, so they issue 3 pollution…

3. (4 points) Suppose there are two firms producing 6 units of pollution each. T

3. (4 points) Suppose there are two firms producing 6 units of pollution each. The government decides that they want to reduce the total pollution to 6 units, so they issue 3 poll…

3. (4 points) The questions below ask you to fill in values on the table. real G

3. (4 points) The questions below ask you to fill in values on the table. real GDP per capita capital per personk1/3 Country USA Canada norm y norm A 42,887 36,168 29.633 Hong Kon…

3. (40 points)In 1990, Whittington, et al published a study on the effect of tax

3. (40 points)In 1990, Whittington, et al published a study on the effect of tax ex- emptions on the general rate of fertility (births per 1000 women). The original article can be…

3. (40 pts) Conigan Box Company operates in a perfectly competitive market. It\'

3. (40 pts) Conigan Box Company operates in a perfectly competitive market. It's total cost function is C(a) 23 12q2 +24q + 15. The prevailing price in the market is $24. 9 a. Acc…