Economics

Assume the marginal propensity to consume (MPC) is o.75 and the government cuts

Assume the marginal propensity to consume (MPC) is o.75 and the government cuts taxes by $250 The aggregate demand curve will shift to the: a. left by $750 billion. b. left by $1,…

Assume the market demand for cigarettes is as follows e(per pack) cks per day) 1

Assume the market demand for cigarettes is as follows e(per pack) cks per day) 100 90 80 0 60 50 40 30 20 Suppose that smoking increases external costs valued at 50 cents per pack…

Assume the market for fruit from a local fruit stand has the supply and demand c

Assume the market for fruit from a local fruit stand has the supply and demand curves given below. P = 0.9 - 0.08Q P = 0.1 + 0.02Q Where P is in dolars and Q is in hundreds of pou…

Assume the market for handkerchiefs is competitive. A new invention leads to lab

Assume the market for handkerchiefs is competitive. A new invention leads to labor-augmenting technological progress in the production of handkerchiefs. This development a. increa…

Assume the market for new homes is competitive in a certain area. Demand for the

Assume the market for new homes is competitive in a certain area. Demand for these homes (simple, starter homes) is given by P = 200,000 - 15Qd, supply for homes is P = 100,000 + …

Assume the market for used cars is set up as in the table below. There are two t

Assume the market for used cars is set up as in the table below. There are two types of cars: lemons and peaches. Peaches are more reliable than lemons and thus have a higher valu…

Assume the money supply is $500, the velocity of money is 8, and the price level

Assume the money supply is $500, the velocity of money is 8, and the price level is $2. Using the quantity theory of mone a. Determine the level of real output. 2000 b. Determine …

Assume the money supply is $700, the velocity of money is 4, and the price level

Assume the money supply is $700, the velocity of money is 4, and the price level is $4. Using the quantity theory of money: a. Determine the level of real output.     $_______ b. …

Assume the operations manager at the company you own prefers to put in low effor

Assume the operations manager at the company you own prefers to put in low effort rather than high effort. In order the manager to exert high effort, his expected financial gain m…

Assume the perfectly competitive market, and the market price of each product is

Assume the perfectly competitive market, and the market price of each product is $40. 1.How many product should you produce? 2.what is your total revenue? 3.what is the amount of …

Assume the price level is fixed in the short run so that the economy does not re

Assume the price level is fixed in the short run so that the economy does not reach a general equilibrium immediately after a change in the economy. For each of the following chan…

Assume the price of a good increases from $6 to $7, the total revenue earned inc

Assume the price of a good increases from $6 to $7, the total revenue earned increases from $700 to $790. Based on this information, the price elasticity of demand over this range…

Assume the price of a tradable emissions permit for a ton of sulfur dioxide is $

Assume the price of a tradable emissions permit for a ton of sulfur dioxide is $150. Which of the following is incorrect? Choose one answer. a. A firm that has more permits than i…

Assume the price of a tradable emissions permit for a ton of sulfur dioxide is $

Assume the price of a tradable emissions permit for a ton of sulfur dioxide is $150. Which statement is FALSE? A firm that buys permits has an incentive to limit pollution up to t…

Assume the price of a tradable emissions permit for a ton of sulfur dioxide is $

Assume the price of a tradable emissions permit for a ton of sulfur dioxide is $150. Which of the following is incorrect? Choose one answer. a. A firm that has more permits than i…

Assume the price of a tradable emissions permit for a ton of sulfur dioxide is $

Assume the price of a tradable emissions permit for a ton of sulfur dioxide is $150. Which of the following is incorrect? Choose one answer. a. A firm that has more permits than i…

Assume the price of baseballs is $5 and baseball gloves is $20. Assume you have

Assume the price of baseballs is $5 and baseball gloves is $20. Assume you have $100 total to spend on these items. Construct a table similar to the one on page 159. What is the p…

Assume the price of capital doubles and, as a result, firms make no change in th

Assume the price of capital doubles and, as a result, firms make no change in the relative quantities of capital and labor they employ. This implies that: labor is not readily sub…

Assume the required reserve ratio is 10 percent and the FOMC orders an open mark

Assume the required reserve ratio is 10 percent and the FOMC orders an open market sale of $50 million in government securities to banks. Using the oversimplified money multiplier…

Assume the required reserve ratio is 20% Assume the bank has a check cleared aga

Assume the required reserve ratio is 20% Assume the bank has a check cleared against it for $ 50,000. What are the bank's: deman deposits________ reserves_____________ After the t…

Assume the short run variable cost function for Japanese beer is VC 0.55q08 If t

Assume the short run variable cost function for Japanese beer is VC 0.55q08 If the fixed cost (F) is $600 and the firm produces 650 units, determine the total cost of production (…

Assume the short-run average total cost for a perfectlycompetitive industry rema

Assume the short-run average total cost for a perfectlycompetitive industry remains constant as the output of the industryexpands. In the long run, the industry supply curve will:…

Assume the sup ly curves of candies and water have the same elasticity (they bot

Assume the sup ly curves of candies and water have the same elasticity (they both are unit elastic). If the government imposes the same tax on water and candies, we can affirm tha…

Assume the table below shows the quantities of automobiles and computers that a

Assume the table below shows the quantities of automobiles and computers that a worker can produce in a day in the United States and Japan Computers 24 12 Automobiles United State…

Assume the two-period Fisher model, where the government and the household both

Assume the two-period Fisher model, where the government and the household both have to abide by two-period budget constraints, and where there is no investment expenditure. Suppo…

Assume there are 2 countries: China and Denmark. Given the same amount of inputs

Assume there are 2 countries: China and Denmark. Given the same amount of inputs, the table below shows how much apples and beets they can produce. a. Which country has an absolut…

Assume there are 2 types of workers: high-ability workers, and low-ability worke

Assume there are 2 types of workers: high-ability workers, and low-ability workers. The proportion of workers that are high-ability is (“theta”), so the proportion that are low-ab…

Assume there are 2424 firms in the industry for plasma TV manufacturers. Their m

Assume there are 2424 firms in the industry for plasma TV manufacturers. Their market shares are as follows: 5555%, 1515%, 99%, 2121 each with 1%. The value of the Herfindahl-Hirs…

Assume there are 400 families in a community. Each of these families spends exac

Assume there are 400 families in a community. Each of these families spends exactly $100 plus one-half of its total income each week on consumption. Half of the 400 families are c…

Assume there are 400 families in a community. Each of these families spends exac

Assume there are 400 families in a community. Each of these families spends exactly $100 plus one-half of its total income each week on consumption. Half of the 400 families are c…

Assume there are 400 families in a community. Each of these families spends exac

Assume there are 400 families in a community. Each of these families spends exactly $100 plus one-half of its total income each week on consumption. Half of the 400 families are c…

Assume there are only two producers of tennis rackets: Wilson and Prince. The ma

Assume there are only two producers of tennis rackets: Wilson and Prince. The market demand for tennis rackets is depicted by the algebraic formula P - 100 - Q, where P stands for…

Assume there are only two producers of tennis rackets: Wilson and Prince. The ma

                                      Assume there are only two producers of tennis rackets: Wilson and Prince. The market demand for tennis rackets is depicted by the algebraic f…

Assume there are two firms, A and B. Following a decrease in variable cost that

Assume there are two firms, A and B. Following a decrease in variable cost that affects both firms, each firm must decide to lower price or to maintain price. If firm A maintains …

Assume there are two individuals (person A and person B) who have the same prefe

Assume there are two individuals (person A and person B) who have the same preference for Kramer IMAX Theater, i.e. their marginal benefits from watching movies are exactly the sa…

Assume there are two workers at the St. Louis Smoothie Company, Joe and Wendy, a

Assume there are two workers at the St. Louis Smoothie Company, Joe and Wendy, and two menu items- smoothies and sandwiches. Answer the following questions based on the table belo…

Assume there is a cap on aggregate emissions that has been decided upon by regul

Assume there is a cap on aggregate emissions that has been decided upon by regulators after considering the aggregate marginal abatement cost curve and the marginal damage cost. T…

Assume there is a city of 1,000,000 people, 60 % of whom are willing to pay $1 m

Assume there is a city of 1,000,000 people, 60 % of whom are willing to pay $1 maximum (each) to clean up pollution. The rest of the population is wealthier and is willing to pay …

Assume there is a controversy over the nature, health, and viability of the econ

Assume there is a controversy over the nature, health, and viability of the economy. You are a member of the Council of Economic Advisers to a newly elected president, and you hav…

Assume there is a permanent reduction in the rate of technological progress What

Assume there is a permanent reduction in the rate of technological progress What is the likely impact on the growth rate and the level of output per worker in the short run and in…

Assume there is a predominantly black, central-city school district surrounded b

Assume there is a predominantly black, central-city school district surrounded by white, suburban districts that recruit teachers from the same pool. Black teachers are equally wi…

Assume there is a well-defined geographic area of a city. The area is composed e

Assume there is a well-defined geographic area of a city. The area is composed exclusively of apartments and is populated by low-income residents. The people who live in the area …

Assume there is an imperfect capital market. Draw a graph to show the optimal ye

                            Assume there is an imperfect capital market. Draw a graph to show the optimal years of schooling for an                                                …

Assume there is no leakage from the banking system and that all commercial banks

Assume there is no leakage from the banking system and that all commercial banks are loaned up. Suppose the reserve ratio is 25%. When the Fed buys $40m of bonds from the public w…

Assume there is no leakage from the banking system and that all commercial banks

Assume there is no leakage from the banking system and that all commercial banks are loaned up. Suppose the reserve ratio is 25%. When the Fed buys $40m of bonds from the public w…

Assume this firm is making a loss when it produces its 7th unit of output. What

Assume this firm is making a loss when it produces its 7th unit of output. What should the firm do in the short-run? You will need this additional information to answer this quest…

Assume this is a repeated game (rather than a one-time game) and that the intera

Assume this is a repeated game (rather than a one-time game) and that the interaction between the two firms occurs indefinitely. Collusion, with a credible threat, would not be ne…

Assume throughout this question that the economy is operating somewhat under its

Assume throughout this question that the economy is operating somewhat under its capacity. Recent reports signal increasing unemployment, while a survey of manufacturers’ investme…

Assume we can use the Malthusian model to describe the situation in Twilightia.

Assume we can use the Malthusian model to describe the situation in Twilightia. In particular, the relationship between its income per capita (y) and the growth rate of the popula…

Assume we have a nuclear power plant that discharges higher temperature water ou

Assume we have a nuclear power plant that discharges higher temperature water out of its cooling system into a river. Downstream the river is located a fishery that is negatively …