Economics

Assume that Botco, Inc. is constructing 400,000 remote-controlled cars per month

Assume that Botco, Inc. is constructing 400,000 remote-controlled cars per month to sell to hobbyists. After doing some analysis, Botco's chief economist reported that, under curr…

Assume that C = 100 + 0.9Y D where C is consumption and Y D is disposable income

Assume that C = 100 + 0.9YD where C is consumption and YD is disposable income. >If YD = $1000B, what is the average propensity to consume, the average propensity to save, the …

Assume that Candle Wax is traded in a perfectly competitive market in which the

Assume that Candle Wax is traded in a perfectly competitive market in which the demand curve captures buyers' full willingness to pay while the supply curve reflects all productio…

Assume that Country A has a population of 500,000 and only produces one good: ca

Assume that Country A has a population of 500,000 and only produces one good: cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but the…

Assume that Dunkin Donut and Starbucks can each play strategies of lowering pric

Assume that Dunkin Donut and Starbucks can each play strategies of lowering prices or introducing new products. The profits for each firm, given the strategy of their rival are sh…

Assume that Falda and Varick can switch between producing wheat and producing cl

Assume that Falda and Varick can switch between producing wheat and producing cloth at a constant rate. Refer to Table 3-30. Falda has a comparative advantage in the production of…

Assume that France and Britain each produce two goods, champagne and muffins. Th

Assume that France and Britain each produce two goods, champagne and muffins. The amounts of champagne and muffins that can be produced in a day (if they devote all resources to t…

Assume that JAO\'s demand function for coffee is Q = 10 - p, where p is the pric

Assume that JAO's demand function for coffee is Q = 10 - p, where p is the price of a cup of coffee. (a) Assume that the marginal cost of a cup of coffee is one dollar. Assume tha…

Assume that Janet Yellen (chair of the US Fed Reserve) decides to reduce the US

Assume that Janet Yellen (chair of the US Fed Reserve) decides to reduce the US money supply (i.e., contractionary monetary policy) 1) Using the concept of money market equilibriu…

Assume that Janet Yellen (chair of the US Fed Reserve) decides to reduce the US

Assume that Janet Yellen (chair of the US Fed Reserve) decides to reduce the US money supply (i.e., contractionary monetary policy) 1) Using the concept of money market equilibriu…

Assume that Janet Yellen (chair of the US Fed Reserve) decides to reduce the US

Assume that Janet Yellen (chair of the US Fed Reserve) decides to reduce the US money supply (i.e., contractionary monetary policy). 1) Using the concept of money market equilibri…

Assume that Japan and Korea can switch between producing cars and producing airp

Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. Hours Needed Quantity to Make 1 Produced in 2400 Hours Car apan 30 150 Ko…

Assume that KPM’s demand function for coffee is (1) Q = 1 – p, where p is the pr

Assume that KPM’s demand function for coffee is (1) Q = 1 – p, where p is the price of a cup of espresso. (a) Assume that the marginal cost of a cup of coffee is 10 cents. Assume …

Assume that M1 is currently $2,700 and M2 is $11,000. Determine the new levels f

Assume that M1 is currently $2,700 and M2 is $11,000. Determine the new levels for M1 and M2 and whether the new values represent an increase decrease or unchanged totals for M1 a…

Assume that Maria Moneybags keeps $1000 in cash in her sock drawer. Use this inf

Assume that Maria Moneybags keeps $1000 in cash in her sock drawer. Use this information to answer questions 9 to 14. 9. Over the first year, the inflation rate is 10%. What is th…

Assume that Mexico is a small country , which imports pocket calculators at the

Assume that Mexico is a small country, which imports pocket calculators at the free trade world price of Pw = $10. At this price the quantities supplied and the demanded are 10 an…

Assume that Mexico is a small country , which imports pocket calculators at the

Assume that Mexico is a small country, which imports pocket calculators at the free trade world price of Pw = $10. At this price the quantities supplied and the demanded are 10 an…

Assume that Microsoft Corp want to expand and has to make some long-term capital

Assume that Microsoft Corp want to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the mer…

Assume that Microsoft Corp want to expand and has to make some long-term capital

Assume that Microsoft Corp want to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the mer…

Assume that Professor Forehead\'s preferences for jars of peanut butter (good x1

Assume that Professor Forehead's preferences for jars of peanut butter (good x1) and jars of jelly (good x2) are represented by u(x1, x2) = min{2x1, x2} Assume further that p1 =1.…

Assume that Sam is going to maximize his income for the next 6 years. He has the

Assume that Sam is going to maximize his income for the next 6 years. He has the opportunity to: Attend a local community college which costs him $10,000 per year and it takes two…

Assume that Thailand and India are potential trading partners of China. Thailand

Assume that Thailand and India are potential trading partners of China. Thailand is a member of ASEAN but India is not. Suppose the import price of textiles from India (PIndia) is…

Assume that Timmy lives in the rough east side of Oakland. Here it is quite comm

Assume that Timmy lives in the rough east side of Oakland. Here it is quite common for graffiti to show up everywhere. People's cars and sides of houses get "tagged" or have graff…

Assume that U.S. agricultural land is used either to raise cattle for beef or to

Assume that U.S. agricultural land is used either to raise cattle for beef or to grow wheat. Figure 2-2 represents the production possibility frontier for beef and wheat. Between …

Assume that Zimbabwe and Portugal can switch between producing toothbrushes and

Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. Refer to Table 3-22. Zimbabwe has an absolute advantage i…

Assume that a $100 at February 1, 2014 will worth $110 on January 31, 2015 and w

Assume that a $100 at February 1, 2014 will worth $110 on January 31, 2015 and was $ 90 on January 31, 2013: A- compute the interest rate for past and next year. Are they the same…

Assume that a 2 percent increase in income results in a 4 percent decrease in th

Assume that a 2 percent increase in income results in a 4 percent decrease in the quantity demanded of a good. The income elasticity of demand for the good is Question 1 options: …

Assume that a 2% tax is levied on the monopolist\'s profits. Does this have any

Assume that a 2% tax is levied on the monopolist's profits. Does this have any effect on its choices of output level and output price? Consider now a quantity tax of $1 per output…

Assume that a bond will make payments every six months as shown on the following

Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): Period 19 20 Cash Flows $20.00 $20.00 $20.00 $20.00 $1,000 a. …

Assume that a business firm finds that its profit is greatest when it produces $

Assume that a business firm finds that its profit is greatest when it produces $40 worth of a product A. Suppose also that each of the three techniques shown in the following tabl…

Assume that a consumer can purchase only two goods: R (recreation) and M (materi

Assume that a consumer can purchase only two goods: R (recreation) and M (material goods). The market price of R is $2 and the market price of M is $1. The consumer spends all her…

Assume that a consumer has the utility function U(x,y) = (3x + 1)y, where x and

Assume that a consumer has the utility function U(x,y) = (3x + 1)y, where x and y represent the quantities of two goods, X and Y. Calculate the consumers marginal utilities for go…

Assume that a consumer has the utility function U(x,y) = (3x+1)y, where x and y

Assume that a consumer has the utility function U(x,y) = (3x+1)y, where x and y represent the quantities of two goods, X and Y. (a) Calculate the consumer’s marginal utilities for…

Assume that a consumer pruchases A, B, and C in quantites suchthat the last doll

Assume that a consumer pruchases A, B, and C in quantites suchthat the last dollar spent on each yields the same marginal utilityand the consumer's income is totally spent. We can…

Assume that a consumer\'s indifference curve is a downward-sloping straight line

Assume that a consumer's indifference curve is a downward-sloping straight line. As the consumer moves from left to right along the horizontal axis, the consumer's marginal rate o…

Assume that a country with a fixed exchange reate has an import of 100 per month

Assume that a country with a fixed exchange reate has an import of 100 per month and an export of 100 per month. Suddenly and unexpectedly the exchange rate is devaluated with 10 …

Assume that a country\'s production function is Y = AK^(1/2)L^(1/2) a. What is t

Assume that a country's production function is Y = AK^(1/2)L^(1/2) a. What is the per-worker production function y = f(k) if A = 1? b. Assume that the country possesses 40,000 uni…

Assume that a country\'s production function is Y= K12L 12 What is the per-worke

Assume that a country's production function is Y= K12L 12 What is the per-worker production function y =f(k)? Assume that the country possesses 40,000 units of capital and 10,000 …

Assume that a country’s real growth is 2 percent per year, while its real defici

Assume that a country’s real growth is 2 percent per year, while its real deficit is rising 5 percent a year. a. Can the country continue to afford such deficits indefinitely? a. …

Assume that a derivative product has been developed such as it\'s value is equal

Assume that a derivative product has been developed such as it's value is equal to the square root of the underlying asset, as such: The price of the underlying asset follows an I…

Assume that a financial asset gives its owner the following cash flows which are

Assume that a financial asset gives its owner the following cash flows which are invested using the compound interest method: year zero, 10960 dollars outflow; year one, 45177 dol…

Assume that a firm is a perfectly competitive industry has the following total c

Assume that a firm is a perfectly competitive industry has the following total cost schedule: Outputs (units) <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:…

Assume that a firm is a perfectly competitive industry has the following total c

Assume that a firm is a perfectly competitive industry has the following total cost schedule Outputs (units) <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:o…

Assume that a firm is producing at its profit-maximizing level of output. A decr

Assume that a firm is producing at its profit-maximizing level of output. A decrease in fixed cost implies that: A) marginal revenue will increase but marginal cost will decrease.…

Assume that a firm pays taxes on revenue and is allowed some deductions. 1.Deriv

Assume that a firm pays taxes on revenue and is allowed some deductions. 1.Derive and explain the user cost of capital if the firm's nominal interest payments are tax deductible. …

Assume that a firm uses labor and capital to produce a product. The firm hires l

Assume that a firm uses labor and capital to produce a product. The firm hires labor at a wage rate of $4 per unit and rents capital at $5 per unit. At its current output level, t…

Assume that a grateful engineering economy graduate starts an endowment at Calif

Assume that a grateful engineering economy graduate starts an endowment at Californa University by donating $100,000 now. The conditions of the donation are that scholarships tota…

Assume that a grateful engineering economy graduate starts an endowment at Calif

Assume that a grateful engineering economy graduate starts an endowment at Californa University by donating $100,000 now. The conditions of the donation are that scholarships tota…

Assume that a hypothetical economy with an MPC of 0.75 is experiencing a severe

Assume that a hypothetical economy with an MPC of 0.75is experiencing a severe recession. By how much would government spending have to rise to shift the aggregate demand curve ri…

Assume that a hypothetical economy with an MPC of 0.75 is experiencing a severe

Assume that a hypothetical economy with an MPC of 0.75is experiencing a severe recession. By how much would government spending have to rise to shift the aggregate demand curve ri…