Economics

Consider an economy with a representative consumer, representative firm, and gov

Consider an economy with a representative consumer, representative firm, and government. The consumer’s utility function of consumption and leisure is given by U(C, l) = C + ln l.…

Consider an economy with a shrinking sto ck of at money. Let N t = N , a constan

Consider an economy with a shrinking sto ck of at money. Let N t = N , a constant, and M t = zM t 1 for every p erio d t , where z is p ositive and less than 1. The government tax…

Consider an economy with just one technique available for the production of each

Consider an economy with just one technique available for the production of each good, food and cloth: Good Food Cloth labor per unit output 1 1 labor per unit output 2 1 a. suppo…

Consider an economy with just one technique available for the production of each

Consider an economy with just one technique available for the production of each good, food and cloth: GOOD----------------FOOD---CLOTH Labor per unit output.....1..........1 Land…

Consider an economy with just one technique available for the production of each

Consider an economy with just one technique available for the production of each good, food and cloth: GOOD----------------FOOD----CLOTH Labor per unit output.....1..........1 Lan…

Consider an economy with marginal product of capital (net of depreciation) 4%. A

Consider an economy with marginal product of capital (net of depreciation) 4%. Assume that banks in this economy offer interest rate of 10% on deposits. Can you tell anything abou…

Consider an economy with n identical investors each endowed with one dollar to d

Consider an economy with n identical investors each endowed with one dollar to deposit in a bank. There are three periods t = 0; 1; 2: At t = 0; the investors decide on whether to…

Consider an economy with the following Cobb-Douglas production function (note th

Consider an economy with the following Cobb-Douglas production function (note that this production function does not contain natural capital). If the capital stock and real GDP gr…

Consider an economy with the following Cobb-Douglass production function: Y=5K^(

Consider an economy with the following Cobb-Douglass production function: Y=5K^(1/3)L^(2/3) a. Derive the equation describing labor demand in this economy as a function of the rea…

Consider an economy with the following aggregate demand (AD) and aggregate suppl

Consider an economy with the following aggregate demand (AD) and aggregate supply (AS) schedules. These schedules reflect the fact that, prior to the period we're examining, decis…

Consider an economy with the following aggregate demand (AD) and short-run aggre

Consider an economy with the following aggregate demand (AD) and short-run aggregate supply (SRAS) schedules. Decision-makers have previously made decisions anticipating that the …

Consider an economy with the following aggregate demand(AD) and aggregate supply

Consider an economy with the following aggregate demand(AD) and aggregate supply(AS) schedules. These schedules reflect the fact that, prior to the period we're examining, decisio…

Consider an economy with two consumers(A and B) and one good X. There are two st

Consider an economy with two consumers(A and B) and one good X. There are two states of the world, the probability of each state is 1/2. The utility of both consumers takes the fo…

Consider an economy with two firms and a government. Firm 1 produces 10000 units

Consider an economy with two firms and a government. Firm 1 produces 10000 units of good X, which it sells for $20 per unit. It uses this revenue to pay $140000 in wages, $10000 i…

Consider an economy with two goods, apples ( A ) and bananas ( B ), two factors

Consider an economy with two goods, apples (A) and bananas (B), two factors of production, labor (L) and capital (K), and two countries, Home and Foreign. Both countries engage in…

Consider an economy with two labor markets: one for manufacturing workers and on

Consider an economy with two labor markets: one for manufacturing workers and one for service workers. Suppose initially that neither is unionized. Which of the following will hap…

Consider an ecpnomy described by the production function : Y= F(K,L) = K 2/3 L 1

Consider an ecpnomy described by the production function : Y= F(K,L) = K2/3 L1/3. a. Find the per worker production function. b. Assuming population growth (n) and technological c…

Consider an employer, Sears, designing a two-period, delayed-compensation contra

Consider an employer, Sears, designing a two-period, delayed-compensation contract for Jane, a prospective worker. If Jane declines Sears's offer, she may accept an alternative jo…

Consider an exchange economy with two prominent leaders: Romney and Bernanke. Ea

Consider an exchange economy with two prominent leaders: Romney and Bernanke. Each get utility from destroying jobs, J; and from power, P. Their utility functions are: URomney = l…

Consider an illness that affects 1,000 patients, but can be treated by 3 mutuall

Consider an illness that affects 1,000 patients, but can be treated by 3 mutually exclusive medical interventions I, II, and III. Intervention I costs $9,000 per patient, and can …

Consider an income support program (similar to AFDC after 1967) in which a famil

Consider an income support program (similar to AFDC after 1967) in which a family with no income would receive $1500 in cash benefits per month, and if the family receives income …

Consider an income support program (similar to AFDC before 1967) in which a fami

Consider an income support program (similar to AFDC before 1967) in which a family of four is guaranteed an income of $1500 per month, so that if their income Y is greater than $1…

Consider an income-leisure trade-off model with assets. Specifically, individual

Consider an income-leisure trade-off model with assets. Specifically, individuals have identical utility function where c and L are consumption and labor, respectively. The time e…

Consider an increase in the price of good X. The substitution effect for good X

Consider an increase in the price of good X. The substitution effect for good X can be calculated either by holding the utility level constant or by allowing the consumer to buy t…

Consider an individual aged 22 who is completing a bachelor Solution Age bachelo

Consider an individual aged 22 who is completing a bachelor

Consider an individual aged 22 who is completing a bachelor Solution Age bachelo

Consider an individual aged 22 who is completing a bachelor

Consider an individual aged 22 who is completing a bachelor Solution Age bachelo

Consider an individual aged 22 who is completing a bachelor

Consider an individual aged 22 who is completing a bachelor Solution Age bachelo

Consider an individual aged 22 who is completing a bachelor

Consider an individual facing the risk of becoming ill and her willingness to in

Consider an individual facing the risk of becoming ill and her willingness to insure herself. The individual has a probability of 5% of getting seriously ill in a given year. If s…

Consider an individual that can consume 2 goods: x and y. The price of good x is

Consider an individual that can consume 2 goods: x and y. The price of good x is px and the price of good y is py. The individual faces a budget constraint of I (or income). C) Su…

Consider an individual who has an MBA degree and is considering investing $200,0

Consider an individual who has an MBA degree and is considering investing $200,000 in a retail store that she would manage. The projected income (revenue) for the year as prepared…

Consider an individual who moves from Asia to the United States and brings with

Consider an individual who moves from Asia to the United States and brings with him his life savings of $40,000, which he deposits in a U.S. bank. For each of the cases below, com…

Consider an individual with utility for a composite good (X) and indoor air qual

Consider an individual with utility for a composite good (X) and indoor air quality (Q): U = XQ. Indoor air quality depends on pollution levels outside (P) and defensive expenditu…

Consider an individual with utility function U=(C 1 ) 3/4 (C 2 ) 1/4 who is aliv

Consider an individual with utility function U=(C1)3/4(C2)1/4 who is alive for two periods and has an income stream(m1, m2). At some point the government decides to intervene in t…

Consider an individual\'s indirect utility function where p represents the price

Consider an individual's indirect utility function where p represents the price-vector and y represents the individual's wealth (a) State Roy's identity and use it to show that th…

Consider an industry I with many small firms that engage in perfect competition

Consider an industry I with many small firms that engage in perfect competition such that the economic profits are zero. The supply curve of this industry can be approximated as P…

Consider an industry in which in which each firm has the following total cost fu

Consider an industry in which in which each firm has the following total cost function: TC = 50q. The market demand curve for the product is given by: Q = 1000 – 2P. (a). Suppose …

Consider an industry in which n firms produce a homogeneous product. Demand for

Consider an industry in which n firms produce a homogeneous product. Demand for the product is given by p = a Q, where a is a positive constant and Q is the industry output. Each …

Consider an industry in which there are a large number of potential firms. Each