Economics

Consider a town with a river. The town has hiding lodge whose use the river for

Consider a town with a river. The town has hiding lodge whose use the river for recreation. The town also has a chemical plant that creates industrial waste, which it dumps into t…

Consider a town with four citizens. All of them love fireworks and are willing t

Consider a town with four citizens. All of them love fireworks and are willing to pay the amount of dollars in the following table to see the fireworks Suppose that a firework sho…

Consider a two-period model. A consumer has preferences for current versus futur

Consider a two-period model. A consumer has preferences for current versus future consumption represented by: U(C,C') = C1/4C'3/4 Current income y=100, future income y' = 10, curr…

Consider a two-period repeated game. The stage game is the following Find all pu

Consider a two-period repeated game. The stage game is the following Find all pure-strategy Nash equilibria of the stage gam in other words when the above game is played only once…

Consider a two-period representative-agent economy. Agents live for two periods

Consider a two-period representative-agent economy. Agents live for two periods (t=0. 1) and then die. Each agent is endowed with a ''free". A tree yields output (dividend) ytto i…

Consider a typical short-run AS/AD model which consists of AD and SRAS curves. I

Consider a typical short-run AS/AD model which consists of AD and SRAS curves. In each of the following cases, in the short run, determine whether the events cause a shift of a cu…

Consider a typical village money lender in a loan market where competition among

Consider a typical village money lender in a loan market where competition among money lenders drives the rural rate of interest to a point where each lender on average earns zero…

Consider a used-car market with asymmetric information. The owners of used cars

Consider a used-car market with asymmetric information. The owners of used cars know what their vehicles are worth but have no way of credibly demonstrating those values to potent…

Consider a very simple labor market model described by the equations below. L s

Consider a very simple labor market model described by the equations below. Ls = ¯a w + ¯l(little letter of L) Ld = ¯f w(1 + ) where w is the wage rate, ¯l is the household’s tast…

Consider a village money lender who lends to borrowers on a repeated basis and t

Consider a village money lender who lends to borrowers on a repeated basis and the interest rate that she charges is fixed at 10%. The loans are informal and are not backed up by …

Consider a village of ten people. If a nearby mosquito-infested swamp is drained

Consider a village of ten people. If a nearby mosquito-infested swamp is drained, then all ten people receive a benefit of b. People simultaneously choose either to volunteer for …

Consider a worker who is paid a wage of $20 per hour. The worker has a disutilit

Consider a worker who is paid a wage of $20 per hour. The worker has a disutility h^2 of working h hours. Assume that the worker faces a tax rate t. Thus, his net (after-tax wage …

Consider a worker, Phil, whose life-cycle wage paths is upward sloping (i.e., ho

Consider a worker, Phil, whose life-cycle wage paths is upward sloping (i.e., hourly wage rate rises with age). Another worker, Bill, has the same wage rate as Phil's at every age…

Consider a world in which there is no currency and depository institutions issue

Consider a world in which there is no currency and depository institutions issue only checkable deposits and desire to hold no excess reserves. The required reserve ratio is 20 pe…

Consider a world with two countries, H and F. H is the importer of a homogeneous

Consider a world with two countries, H and F. H is the importer of a homogeneous good produced by perfectly competitive firms and F is the exporter (so both countries are “large”)…

Consider a world with two countries, Home and Foreign, and two goods, good X and

Consider a world with two countries, Home and Foreign, and two goods, good X and good Y. Both countries use labor as the only factor of production. Both countries are endowed with…

Consider a world with two countries, Home and Foreign, and two goods, good X and

Consider a world with two countries, Home and Foreign, and two goods, good X and good Y. Both countries use labor as the only factor of production. Both countries are endowed with…

Consider again that a rm operates in the long run, using the following productio

Consider again that a rm operates in the long run, using the following production function: Q = 2 L K , where Q is units of output, L is units of labor, and K is units of capital.…

Consider again the function for the demand for sugar presented in question 6 of

Consider again the function for the demand for sugar presented in question 6 of Section 8.2, Q_d = f(Y,P_c,P_s) = 0.05Y + 10P_C - 5P^2_s, where Q_d is the demand for sugar, Y is i…

Consider aggregate supply and then choose the statement that is correct O A. Alo

Consider aggregate supply and then choose the statement that is correct O A. Along the AS curve, a rise in the price level brings a decrease in the quantity of real GDP supplied O…

Consider an 8-item choice problem where choice is constrained by total income m

Consider an 8-item choice problem where choice is constrained by total income m = 8 and linear prices pi = 1 for each item i = 1, ..., 8. You believe strongly in living a balanced…

Consider an OLG economy. People receive y > 0 when young and nothing when old. T

Consider an OLG economy. People receive y > 0 when young and nothing when old. The only asset available in the economy is capital. One unit of consumption today could be transf…

Consider an OLG model in which consumers live for 2 periods. Consumers have a lo

Consider an OLG model in which consumers live for 2 periods. Consumers have a log utility function given by U(e1, e2) = log(e1) + beta log(e2), Consumers receive endowment y in te…

Consider an antique auction where bidders have independent private values. There

Consider an antique auction where bidders have independent private values. There are two bidders, each of whom perceives that valuations are uniformly distributed between $100 and…

Consider an antique auction where bidders have independent private values. There

Consider an antique auction where bidders have independent private values. There are two bidders, each of whom perceives that valuations are uniformly distributed between $100 and…

Consider an antique auction where bidders have independent private values. There

Consider an antique auction where bidders have independent private values. There are two bidders, each of whom perceives that valuations are uniformly distributed between $100 and…

Consider an art auction with two bidders in which the auction procedure is that

Consider an art auction with two bidders in which the auction procedure is that described in the text. Suppose that the auctioneer raises bids by multiples of one thousand dollars…

Consider an art auction with two bidders in which the auction procedure is that

Consider an art auction with two bidders in which the auction procedure is that described in the text. Suppose that the auctioneer raises bids by multiples of one thousand dollars…

Consider an asset that costs $140 today. You are going to hold it for 1 year and

Consider an asset that costs $140 today. You are going to hold it for 1 year and then sell it. Suppose that there is a 25 percent chance that it will be worth $100 in a year, a 25…

Consider an auction with 4 bidders. Their values are given by v1 = 64, v2 = 82,

Consider an auction with 4 bidders. Their values are given by v1 = 64, v2 = 82, v3 = 33 and v4 = 56, respectively. Each bidder knows his own value, but the only thing he knows abo…

Consider an auction with two bidders. The auctioneer believes that each of the f

Consider an auction with two bidders. The auctioneer believes that each of the following two cases occurs with probability 1/2. Case 1: Bidder A has a value for the object of $60,…

Consider an economic model in which wages depend on years of experience (exper)

Consider an economic model in which wages depend on years of experience (exper) and unobservable factors () according to wage = ˜0 + ˜1exper + . i. Provide an expression for the c…

Consider an economy characterized by the following components (all values are in

Consider an economy characterized by the following components (all values are in $ billions): C = 5 + 0.8Yd 1=10 G = 15 t = 0.1 m = 0.07 X = 5 What is the marginal propensity to s…

Consider an economy characterized by the following information. Potential output

Consider an economy characterized by the following information.             Potential output/Natural rate of output = $850 billion per year             Current output = $830 billi…

Consider an economy consisting of exactly two firms A and B. Firm A sells Good X

Consider an economy consisting of exactly two firms A and B. Firm A sells Good X to Firm B and to the public. Firm B produces and sells Good Y for which Good X is an input. Each f…

Consider an economy currently in recession. Assume that the full-employment equi

Consider an economy currently in recession. Assume that the full-employment equilibrium is at $600 billion of real GDP, and assume that in order for the economy to be at full empl…

Consider an economy described by the following 4. (16 points) Monetary Policy& T

Consider an economy described by the following 4. (16 points) Monetary Policy& The Federal Reserve: equations Consumption :C 15,000+.6(Y -T) -55,000r Planned Investment : IP 8…

Consider an economy described by the following equations: C = 250 + 0.75(Y ? T )

Consider an economy described by the following equations: C = 250 + 0.75(Y ? T ) I = 750 G = 1000 T = 1000 N X = 0 (For each of the questions below make sure you understand concep…

Consider an economy described by the following equations: Y = C + I + G + NX Y =

Consider an economy described by the following equations: Y = C + I + G + NX Y = 5,000 G = 1,000 T = 1,000 C = 250 + 0.75 (Y – T) I = 1,000 – 50 r NX = 500- 500 r = r* = 5 In this…

Consider an economy described by the production function: Y = F (K, L ) = K^(2/3

Consider an economy described by the production function: Y = F (K, L ) = K^(2/3)L^(1/3). a) Find the per worker production function. b) Assuming population growth (n) and technol…

Consider an economy described by the production function: Y=f(K,L)=K^(.3)L^(.7)

Consider an economy described by the production function: Y=f(K,L)=K^(.3)L^(.7) a. What is the per-worker production function? b. Assuming no population growth or technological pr…

Consider an economy described by the production function: Y=f(K,L)=K^(.3)L^(.7)

Consider an economy described by the production function: Y=f(K,L)=K^(.3)L^(.7) a. What is the per-worker production function? b. Assuming no population growth or technological pr…

Consider an economy has the following information Find GDP equilibrium numerical

Consider an economy has the following information Find GDP equilibrium numerically and graphically Calculate MPC and Multiplier Assume Government expenditure has increased by 10. …

Consider an economy has the following information Find GDP equilibrium numerical

Consider an economy has the following information Find GDP equilibrium numerically and graphically Calculate MPC and Multiplier Assume Government expenditure has increased by 10 F…

Consider an economy in a recessionary gap. The government plans to pursue a fisc

Consider an economy in a recessionary gap. The government plans to pursue a fiscal expansion by increasing the amount it spends on purchasing (G). a. Discuss the pros and cons of …

Consider an economy in the long run with real GDP equal to the level of potentia

Consider an economy in the long run with real GDP equal to the level of potential output Y^*. The market for financial capital is shown in the graph at right. Explain the slopes o…

Consider an economy in which consumers have identical preference and income. The

Consider an economy in which consumers have identical preference and income. The income is determined randomly and exogenously in each period. Consumers prefer smooth consumption …

Consider an economy in which equivalence does hold. Suppose the government start

Consider an economy in which equivalence does hold. Suppose the government starts with a balanced budget. Then there is an increasing in government change is taxes. Save more incr…

Consider an economy in which every inhabitant described is unique; no one fits i

Consider an economy in which every inhabitant described is unique; no one fits into more than one category. All inhabitants are working-age adults. 3150 people work full-time 2400…

Consider an economy in which people wish to hold bank checking deposits worth a

Consider an economy in which people wish to hold bank checking deposits worth a total of 5 million goods and currency worth 2 million goods in every period. In addition there is a…