Economics

1-Which variable is NOT a demand shifter? Select one: a. price of complements b.

1-Which variable is NOT a demand shifter? Select one: a. price of complements b. price of substitutes c. price of raw materials d. tastes and preferences 2- What does the law of s…

1. $24. $36. $17. $48. 2. Other things equal, an increase in productivity will:

1. $24. $36. $17. $48. 2. Other things equal, an increase in productivity will: reduce both the interest rate and the international value of the dollar. reduce aggregate supply an…

1. ( Natural Rate of Unemployment ) What is the relationship between potential o

1.    (Natural Rate of Unemployment) What is the relationship between potential output and the natural rate of unemployment?         a.    If the economy currently has a frictiona…

1. (0.1 pt) A perfectly competitive firm is a price ____________________. 2. (0.

1. (0.1 pt) A perfectly competitive firm is a price ____________________. 2. (0.2 pt) A competitive firm maximizes profit by choosing the quantity where _________________________ …

1. (0.1 pt) Once a monopolist chooses their profit-maximizing level of output, t

1. (0.1 pt) Once a monopolist chooses their profit-maximizing level of output, they use the _________________________ to find the highest price it can charge for that quantity. 2.…

1. (0.1 pt) _________________________ is a tool used to analyze oligopolistic ma

1. (0.1 pt) _________________________ is a tool used to analyze oligopolistic markets. 2. (0.2 pt) New firms will enter a monopolistically competitive market if       (marginal re…

1. (0.2 pt) If the government imposes a $1,000 per year license fee on all pizza

1. (0.2 pt) If the government imposes a $1,000 per year license fee on all pizza       restaurants, both the _________________________ cost curve and the       the _______________…

1. (1.5 points) John\'s Lawn Mowing Service is a small business that acts as a p

1. (1.5 points) John's Lawn Mowing Service is a small business that acts as a price-taker. The prevailing market price of lawn mowing work is p per acre. Total cost for him is giv…

1. (10 marks) Assume a conventional one sided search model of horizontal vu and

1. (10 marks) Assume a conventional one sided search model of horizontal vu and increasing function of e(w) and an equilibrium condition of s(1-u)= upH (refer to the textbook Figu…

1. (10 marks) Jack and Jill are dining at a fish and chips joint. The joint sell

1. (10 marks) Jack and Jill are dining at a fish and chips joint. The joint sells fish at a fixed price (regardless of how much fish or chips a consumer is purchasing), and chips …

1. (10 points each) According to the theory introduced in chapter 3, give a shor

1. (10 points each) According to the theory introduced in chapter 3, give a short answer to each of the questions answered in chapter 3. Using math might help in some of them (use…

1. (10 points) Consider a duopoly market in which the two firms have no costs of

1. (10 points) Consider a duopoly market in which the two firms have no costs of production. They produce homogeneous goods and inverse market demand is given by P d (Q) = 1 ? Q, …

1. (10 points) Consider the following two-period repeated game. The stage game i

1. (10 points) Consider the following two-period repeated game. The stage game is payoffs SHC S3, 30,1 0, 0 H 1,01, 1 6,0 C 0, 00, 6 5, 5 (a) Find all pure-strategy Nash equilibri…

1. (10 points) Consider the market for a good Q when there is an externality tha

1. (10 points) Consider the market for a good Q when there is an externality that creates marginal environmental damages given by MD. D is demand, S is supply (private marginal co…

1. (10 points) Structural deficits. a. (1 point) Go to https/ sfed.org) Enter \"

1. (10 points) Structural deficits. a. (1 point) Go to https/ sfed.org) Enter "W019RC" in the search box. Click on Quarterly, Seasonally Adjusted Annual Rates". Move your mouse po…

1. (10 points) Suppose the market for car batteries is a perfectly competitive m

1. (10 points) Suppose the market for car batteries is a perfectly competitive market, but that the production of car batteries creates external costs from water pollution. Recall…

1. (10 points) The first problem is the terrible decline of the state’s highways

1. (10 points) The first problem is the terrible decline of the state’s highways. It is estimated that it will cost $600 million to repair the highways. The new governor is propos…

1. (10 points) There are three men m1, m2, m3 and three women w1, w2, w3 in a ma

1. (10 points) There are three men m1, m2, m3 and three women w1, w2, w3 in a marriage market. Their preferences are as follows: P(m1):w1 w2 m1 w3, P(m2):w1 w3 w2 P(m3):w3 w1 w2 P…

1. (10 total points) Suppose a consumer\'s utility function is given by U(X,Y)-X

1. (10 total points) Suppose a consumer's utility function is given by U(X,Y)-X12*y2. Also, the consumer has $32 to spend, and the price of X, Px S1, and the price of Y, Py-$4. a)…

1. (10 total points) Suppose that two players are playing the following game. Pl

1. (10 total points) Suppose that two players are playing the following game. Player A can choose either Top or Bottom, and Player B can choose either Left or Right. The payoffs a…

1. (10% Import tariff on a manufactured good in a country z equals 5% while tari

1. (10% Import tariff on a manufactured good in a country z equals 5% while tariff on raw materials is 1%. In price of the final imported raw materials makes up 40%. Calculate the…

1. (10) Inefficiency of Common Pool Resource Use. A and B own neighboring proper

1. (10) Inefficiency of Common Pool Resource Use. A and B own neighboring properties. Beneath their properties is a well that contains 100 units of oil. The cost to A of extractin…

1. (11.4) Which of these is money: a credit card; lunch vouchers; a portfolio of

1. (11.4) Which of these is money: a credit card; lunch vouchers; a portfolio of blue-chip equi- ties; a $100,000 revolving credit line; a $100 dollar bill in Moscow; one million …

1. (12 points/ 3 points each) Henry the 5th has S5,000 to spend on advertisement

1. (12 points/ 3 points each) Henry the 5th has S5,000 to spend on advertisements for his new shoe line. There are two magazines he can choose from to place his ads, the Wall Stre…

1. (15 points) Under free trade, a large country produces 1 million leather bags

1. (15 points) Under free trade, a large country produces 1 million leather bags per year and imports another 2 million bags per year at the world price of S60 per bag. Assume tha…

1. (18 points) Heidi quit her job as a chef making $40,000 per year to start her

1. (18 points) Heidi quit her job as a chef making $40,000 per year to start her own . The first year, Heidi's restaurant earned $100,000 in revenue. Heidi pays $50,000 per year i…

1. (19 points) Assume Nebraska and Virginia each have 100 acres of farmland. hyp

1. (19 points) Assume Nebraska and Virginia each have 100 acres of farmland. hypothetical figures for yield per acre in the two states: The following table gi Nebraska 14 15 Virgi…

1. (2 points) Suppose a bank\'s balance sheet looks as follows: Assets Liabiliti

1. (2 points) Suppose a bank's balance sheet looks as follows: Assets Liabilities Reserves Loans S 640 5,360 Deposits $6,000 and banks are required to hold reserves equal to 10 pe…

1. (2 points) We use a proxy variable as a solution to solving the econometric p

1. (2 points) We use a proxy variable as a solution to solving the econometric problem of 2. (2 points) Measurement error in the dependent variable of our regression causes which …

1. (20 points) A company is considering a project and estimates that there are t

1. (20 points) A company is considering a project and estimates that there are three possible scenarios for the cash flows and costs. The outcomes and corresponding probabilities,…

1. (20 points) In this question we will analyze the following statement, and sho

1.(20 points) In this question we will analyze the following statement, and show what would happen if the advice given was followed by the Fed: “The increase in the stock market h…

1. (20 points) The market for apartments in Hartford is illustrated in the graph

1. (20 points) The market for apartments in Hartford is illustrated in the graph below. The City Council is considering rent control ordinance. Apartments in Hartford 1,500- 1,400…

1. (20 points) There are two drivers in the town of Radiator Springs, McQueen an

1. (20 points) There are two drivers in the town of Radiator Springs, McQueen and Sally. McQueen has a 5% chance of causing an accident; Sally has a 1% chance. The cost of an acci…

1. (20 points) Two companies, A and B, are operating in an oligopolistic market

1. (20 points) Two companies, A and B, are operating in an oligopolistic market and are about to introduce a new product, each with their own format. Assume that each company will…

1. (20 pts) Consider the market for gin (a kind of hard liquor) in Paradiseland

1. (20 pts) Consider the market for gin (a kind of hard liquor) in Paradiseland and in Stoicland. Suppose the supply of gin in both countries are the same and that both are repres…

1. (20 pts.) A company wants to determine whether to keep or replace a piece of

1. (20 pts.) A company wants to determine whether to keep or replace a piece of manufacturing equipment. The details for the two options are: Old Equipment: Requires overhaul to c…

1. (20 pts.) A company wants to determine whether to keep or replace a piece of

1. (20 pts.) A company wants to determine whether to keep or replace a piece of manufacturing equipment. The details for the two options are: Old Equipment: Requires overhaul to c…

1. (22 points) Suppose a public referendum is being held on whether or not to le

1. (22 points) Suppose a public referendum is being held on whether or not to levy a tax on cigarettes. Currently, the supply of cigarettes is given by Qs-40+7P. You estimate the …

1. (24) You are conducting a study on household milk consumption, and observed n

1. (24) You are conducting a study on household milk consumption, and observed n 33 different households in Los Angeles county. Let the following variables denote your observation…

1. (24) You are condueting a study on household milk consumption, and observed n

1. (24) You are condueting a study on household milk consumption, and observed n-33 different households in Los Angeles county. Let the following variables denote your observation…

1. (25 points) Iggy\'s Ice Cream Shack sells ice cream. The quantity of output (

1. (25 points) Iggy's Ice Cream Shack sells ice cream. The quantity of output (pounds of ice cream scooped per day) and the corresponding number of workers per day are in the foll…

1. (25 total points). You are given the following information about the costs of

1. (25 total points). You are given the following information about the costs of a perfectly competitive firm. Quantity TFC TVC 0 45 0 1 45 20 2 45 35 3 45 45 4 45 75 5 45 120 6 4…

1. (25 total points). You are given the following information about the costs of

1. (25 total points). You are given the following information about the costs of a perfectly competitive firm. Quantity TFC TVC 0 45 0 1 45 20 2 45 35 3 45 45 4 45 75 5 45 120 6 4…

1. (25%)At the outset of chapter X of Book I of Adam Smith’s The Wealth of Natio

1. (25%)At the outset of chapter X of Book I of Adam Smith’s The Wealth of Nations, Smith begins with the statement that “The whole of the advantages and the disadvantages of the …

1. (25%)At the outset of chapter X of Book I of Adam Smith’s The Wealth of Natio

1. (25%)At the outset of chapter X of Book I of Adam Smith’s The Wealth of Nations, Smith begins with the statement that “The whole of the advantages and the disadvantages of the …

1. (3 points) As a principal in the consulting firm where Jose has worked for 20

1. (3 points) As a principal in the consulting firm where Jose has worked for 20 years, he has accumulated 5000 shares of company stock. One year ago, each share of stock was wort…

1. (3 points) Financial friction in the IS-MP model During the financial crisis

1. (3 points) Financial friction in the IS-MP model During the financial crisis of 2007-2008, there was a substantial spread between the interest rate set by the Fed and the inter…

1. (30 points) Consider a market with two firms. Market Demand is given by P-100

1. (30 points) Consider a market with two firms. Market Demand is given by P-100-Q. Firm A has a constant marginal cost of 10 and Firm B has a constant marginal cost of 11. There …

1. (30 points) Country H, which is small, exports good X. Its excess supply curv

1. (30 points) Country H, which is small, exports good X. Its excess supply curve is given by P=100+4X. The world price ratio Px/Py is P=200. It is suggested, but not required, th…

1. (30 points) Suppose a monopolist faces the following demand curve: P = 750 –

1. (30 points) Suppose a monopolist faces the following demand curve: P = 750 – Q. If the long run marginal cost of production is constant and equal to $30. a) (5 points) What is …