Economics

7. Solving for dominant strategies and the Nash equilibrium Suppose Eric and Gin

7. Solving for dominant strategies and the Nash equilibrium Suppose Eric and Ginny are playing a game in which both must simultaneously choose the action Left or Right. The payoff…

7. Solving for dominant strategies and the Nash equilibrium Suppose Gilberto and

7. Solving for dominant strategies and the Nash equilibrium Suppose Gilberto and Juanita are playing a game in which both must simultaneously choose the action Left or Right. The …

7. Solving for dominant strategies and the Nash equilibrium Suppose Larry and Me

7. Solving for dominant strategies and the Nash equilibrium Suppose Larry and Megan are playing a game in which both must simultaneously choose the action Left or Right. The payof…

7. Solving for dominant strategies and the Nash equilibrium Suppose Lorenzo and

7. Solving for dominant strategies and the Nash equilibrium Suppose Lorenzo and Neha are playing a game in which both must simultaneously choose the action Left or Right. The payo…

7. Solving for dominant strategles and the Nash equilibrium Suppose Clancy and E

7. Solving for dominant strategles and the Nash equilibrium Suppose Clancy and Eileen are playing a game in which both must simultaneously choose the action Left or Right. The pay…

7. Substitutability Aa Aa The following graphs show three possible indifference

7. Substitutability Aa Aa The following graphs show three possible indifference curve maps for goods X and Y based on various degrees of substitutability. Suppose that each of the…

7. Substitutes, complements, or unrelated? You work for a marketing firm that ha

7. Substitutes, complements, or unrelated? You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: pengui…

7. Suppose Eva wishes to purchase a new laptop. Her current income is S5,000, an

7. Suppose Eva wishes to purchase a new laptop. Her current income is S5,000, and she knows where she can buy the laptop in Binghamton NY she wants for $1,500. She has heard the r…

7. Suppose a movie theater raises the price of popcorn 10 percent, but customers

7. Suppose a movie theater raises the price of popcorn 10 percent, but customers do not buy any less popcorn. The price elasticity of demand for popcorn at this theater is _______…

7. Suppose economies A and B have the same intial level of GDP per capita at $15

7. Suppose economies A and B have the same intial level of GDP per capita at $15,000, and each economy begins with a constant growth rate of 1% per year. (Neither country has good…

7. Suppose that a consumer is facing following offers: Offer 1: receive today 44

7. Suppose that a consumer is facing following offers: Offer 1: receive today 4400 euros and receive 2200 euros exactly in one year Offer 2: receive today 1500 euros and receive 5…

7. Suppose that a trader sold a put option on a stock at strike price $27.50 and

7. Suppose that a trader sold a put option on a stock at strike price $27.50 and premium S1.25 per share. On the expiration date for the put option, market price of the stock was …

7. Suppose that in a competitive output market, firms hire labor from a competit

7. Suppose that in a competitive output market, firms hire labor from a competitive labor market (so that the profit maximization conditions for hiring labor are as we discussed i…

7. Suppose that the MPC is 0.80 and the government was considering two possible

7. Suppose that the MPC is 0.80 and the government was considering two possible fiscal actions: either raising government expenditures on goods and services by $50 billion, or rai…

7. Suppose that the reserve requirement for checking deposits is 10 percent and

7. Suppose that the reserve requirement for checking deposits is 10 percent and that any excess reserves. a. if the Fed sells $1 million of government bonds, what is the effect on…

7. Suppose you are considering subscribing to Economic Analysis Today magazine.

7. Suppose you are considering subscribing to Economic Analysis Today magazine. You are offered a one-year subscription for $60 or a two-year subscription for $115. Both options r…

7. Suppose you are the Manager of Billy Bob’s Boats, a factory in the Pee Dee wh

7. Suppose you are the Manager of Billy Bob’s Boats, a factory in the Pee Dee which produces small aluminum fishin’ boats. With demand and supply analysis, explain how you expect …

7. Suppose you own a specialized auto parts manufacturer. You purchase and have

7. Suppose you own a specialized auto parts manufacturer. You purchase and have installed a new machine to make a particular type of part. The price of the machine plus installati…

7. Suppose you would like to have enough money in 4 years to purchase a new car.

7. Suppose you would like to have enough money in 4 years to purchase a new car. You want to have $20,000. At an interest rate of 4%, how much do you need to put into your savings…

7. Take the following data as referring to 2000 (they come from UNDP (2001), P a

7. Take the following data as referring to 2000 (they come from UNDP (2001), P and A are for 1999 and Tuses CO2 data for 1997), and the world as being the sum of these three group…

7. The Bank of Canada\'s tools of monetary supply Suppose the money supply (as m

7. The Bank of Canada's tools of monetary supply Suppose the money supply (as measured by chequable deposits) is currently $750 billion. The required reserve ratio is 30%. Banks h…

7. The City of Greenville has decided to build a softball complex on land donate

7. The City of Greenville has decided to build a softball complex on land donated by one of the city residents. The city council has already voted to fund the project at a level o…

7. The Law of Supply suggests that the price-elasticity of supply is: A. Positiv

7. The Law of Supply suggests that the price-elasticity of supply is: A. Positive B. Negative C.Always greater than 1 D.Always less than 1 10. If a 10 percent increase in the pric…

7. The Maytag company produces output using labor (which it purchases on an as-n

7. The Maytag company produces output using labor (which it purchases on an as-needed basis in the market for unskilled workers at a wage of S5 per hour) and one machine (which it…

7. The Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity

7. The Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. Federal Reserve buys a govemment bond worth account at First Ma…

7. The costs of disinflation The following graph depicts the short-run and long-

7. The costs of disinflation The following graph depicts the short-run and long-run Phillips curves (SRPC and LRPC) for a hypothetical economy in long-run macroeconomic equilibriu…

7. The following figure shows a firm\'s isoquant for producing 2,000 units of ou

7. The following figure shows a firm's isoquant for producing 2,000 units of output and four isocost curves. Labor and capital each cost $50 per unit. 400 200 100 Q 2.000 100 200 …

7. The following matrix shows the strategies of At & T and Verizon for charges f

7. The following matrix shows the strategies of At & T and Verizon for charges for long distance calls. The payoff matrix shows the profits each makes in millions of dollars. …

7. The goal of antitrust legislation IS a. maximize profit potential. b. maximiz

7. The goal of antitrust legislation IS a. maximize profit potential. b. maximize deadweight loss. c. promote and protect competition. d. promote and protect market power. U Use t…

7. The helping hand of advanced countries Which of the following actions may hel

7. The helping hand of advanced countries Which of the following actions may help a less-developed country (LDC) escape from the vicious circle of poverty? Check all that apply. 7…

7. The interaction of individual choices Because a type of fish is on the verge

7. The interaction of individual choices Because a type of fish is on the verge of extinction, the government imposes rules that prohibit fishing in the publicly owned spawning gr…

7. The interaction of individual choices Because a type of fish is on the verge

7. The interaction of individual choices Because a type of fish is on the verge of extinction, the government imposes rules that prohibit fishing in the publicly owned spawning gr…

7. The interaction of individual choices Immediately after an ice storm brought

7. The interaction of individual choices Immediately after an ice storm brought down power lines throughout the region, hardware stores were sold out of batteries and flashlights.…

7. The long-run supply curve in different cost industries The following graph sh

7. The long-run supply curve in different cost industries The following graph shows the market for milk. Initially, the market is in a long-run equilibrium Suppose that a change i…

7. The money creation process Suppose First Main Street Bank, Second Republic Ba

7. The money creation process Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 10%. The F…

7. The money creation process Suppose First Main Street Bank, Second Republic Ba

7. The money creation process Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 20%. The F…

7. The money creation process Suppose First Main Street Bank, Second Republic Ba

7. The money creation process Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 20%. The F…

7. The money multiplier and the effects of bank runs Aa Aa Which of the followin

7. The money multiplier and the effects of bank runs Aa Aa Which of the following statements about the money supply are true? Check all that apply Currency in circulation accounts…

7. The negative income tax Many economists believe that a more effective way to

7. The negative income tax Many economists believe that a more effective way to supplement the income of the poor is through a negative income tax. Under this scheme, everyone rep…

7. The price of a good increases and the equilibrium quantity increases. This ca

7. The price of a good increases and the equilibrium quantity increases. This can only happen when the a. supply curve shifts to the right. b. demand curve shifts to the right. c.…

7. The price of popcorn is $0.50 per box and the price of peanuts is $0.25 per b

7. The price of popcorn is $0.50 per box and the price of peanuts is $0.25 per bag. You have S10 to spend on both goods. The maximum number of boxes of popcorn that you can purcha…

7. The principle that a firm should produce up to the point where the marginal r

7. The principle that a firm should produce up to the point where the marginal revenue (MR) from the sale of an extra unit of output is equal to the marginal cost (MC) of producin…

7. The reserve requirement, open market operations, and the moneysupply Assume t

7. The reserve requirement, open market operations, and the moneysupply Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of…

7. The savings and loan crisis Which of the following were provisions of the Mon

7. The savings and loan crisis Which of the following were provisions of the Monetary Control Act of 1980? Check all that apply. a. The act allowed commercial banks to have lower …

7. These are the supply and demand schedules for good X: Quantity Quantity Suppl

7. These are the supply and demand schedules for good X: Quantity Quantity SuppliedDemanded Price $10 18 16 14 12 10 10 12 a) What is the equilibrium price and quantity? At this e…

7. Things that are needed to produce goods and services are called a. Efficient

7. Things that are needed to produce goods and services are called a. Efficient use of resources b. Private property c. Factors of production d. An economic system 8. Three basic …

7. True/False statements. Simply state if the statement is true or false. No exp

7. True/False statements. Simply state if the statement is true or false. No explanation required. a. Prices, which are determined by all buyers and sellers as they interact in th…

7. Two companies, Budweiser and Miller, are the only two beer companies selling

7. Two companies, Budweiser and Miller, are the only two beer companies selling a product in a small town. Each company must simultaneously display their prices, choosing between …

7. Two types of economic growth The following graph shows the aggregate demand c

7. Two types of economic growth The following graph shows the aggregate demand curve (AD) and the short-run aggregate supply curve (SRAS) for a hypothetical economy that produces …

7. U.S. Trucking pays its drivers $40,000 per year, while American Trucking pays

7. U.S. Trucking pays its drivers $40,000 per year, while American Trucking pays its drivers $38,000 per year. For both firms, truck drivers average 240,000 miles per year. For si…