Economics

1. (30 points) Your friend has decided to drop out of school and make his living

1. (30 points) Your friend has decided to drop out of school and make his living selling hand-made wooden chess games. He must replace his used lathe soon and has found two possib…

1. (30 points] The U.S. political establishment is currently focused on taxation

1. (30 points] The U.S. political establishment is currently focused on taxation, but there is continuous mumbling about issues of trade policy and immigration policy. None of the…

1. (30 pts) The wheat market has the following supply and demand functions p-98-

1. (30 pts) The wheat market has the following supply and demand functions p-98-4P+0.21 Where Pw is the price of wheat (per bushel), O is the quantity of wheat in bushels, I is th…

1. (32 total points) Suppose there are two consumers, A and B. The utility funct

1. (32 total points) Suppose there are two consumers, A and B. The utility functions of each consumer are given by: UA(X,Y) = X*Y UB(X,Y) = X*Y2 Therefore: For consumer A: MUX = Y…

1. (35 points) Based on 21 months of past data, Ziggys Drive-In has determined t

1.      (35 points) Based on 21 months of past data, Ziggys Drive-In has determined that the demand for its hamburgers is given by the following equation:                         …

1. (36 points) Suppose a public referendum is being held on whether or not to le

1. (36 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 = -120 + 28P. You estima…

1. (4 points) A person argues that if the prison sentences for all crimes were d

1. (4 points) A person argues that if the prison sentences for all crimes were doubled, this would worsen the problem of overcrowded prisons, all other things being equal. Use the…

1. (4 points) Suppose that economists at Left Twix determine that the price elas

1. (4 points) Suppose that economists at Left Twix determine that the price elasticity of demand for the left twix bar is -2.0. If the marginal cost of producing left twix is equa…

1. (4 points, modified based on Holt-Chapter 26 Q1 & Q2 in the hard copy version

1. (4 points, modified based on Holt-Chapter 26 Q1 & Q2 in the hard copy version or Chapter 12 Q1 & Q2 in the soft version) Consider the game in the following table. Playe…

1. (40 points) An outer belt highway is being planned for a metropolitan area in

1. (40 points) An outer belt highway is being planned for a metropolitan area in Tennessee. The initial cost is estimated to be $170,000,000. Benefits to the public are expected t…

1. (40 points) Frank\'s Fruitcakes is looking to purchase a web server system fo

1. (40 points) Frank's Fruitcakes is looking to purchase a web server system for e-business. Alternative 1 is to purchase an off-brand system, with equipment costing $50,000. Trai…

1. (40 points) Refer to the graph below to answer the following questions. Home\

1. (40 points) Refer to the graph below to answer the following questions. Home's Import-Competing Industry Note: All curves are linear Price Supply Po 100 Demand 800 1700 Quantit…

1. (42 total points) Suppose that a monopolistically competitive firm must build

1. (42 total points) Suppose that a monopolistically competitive firm must build a production facility in order to produce a product. The fixed cost of this facility is FC = $24. …

1. (42 total points) Suppose that a monopolistically competitive firm must build

1. (42 total points) Suppose that a monopolistically competitive firm must build a production facility in order to produce a product. The fixed cost of this facility is FC = $24. …

1. (42 total points) Suppose that a monopolistically competitive firm must build

1. (42 total points) Suppose that a monopolistically competitive firm must build a production facility in order to produce a product. The fixed cost of this facility is FC = $24. …

1. (5 points) A purchase of government bond generates S1 in perpetuity, beginnin

1. (5 points) A purchase of government bond generates S1 in perpetuity, beginning next year. An investment project generates $22 in the next year and $0 afterwards. If the interes…

1. (5 pts) Three residents in the community vote on the number of police officer

1. (5 pts) Three residents in the community vote on the number of police officers to staff their local police station. Henry prefers 20 officers, Mike prefers 16 officers, and Leo…

1. (5 pts) Which of the following tends to have the steepest bid-rent curve near

1. (5 pts) Which of the following tends to have the steepest bid-rent curve near a city center (a) Manufacturing (b) Office (c) Residential (d) Agricultural 2. (5 pts) With factor…

1. (50 pts.) Suppose the demand function for the Toyota Camry is given by Qd = 5

1. (50 pts.) Suppose the demand function for the Toyota Camry is given by Qd = 500 -12PC + 10PH - 5PG + 0.0001M, where PC is the price of the Toyota Camry (in thousands), PH is th…

1. (6 points) The Capital Catering Company specializes in making hors d\'oeuvres

1. (6 points) The Capital Catering Company specializes in making hors d'oeuvres for receptions. It goal is to maximize profit. A small business operated out of a rented test kitch…

1. (6) Fill in the following table, indicating if there is an l Equilibrium P an

1. (6) Fill in the following table, indicating if there is an l Equilibrium P and Q as a result of the shift(s) of the D and/ ncrease, Decrease, or Indeterminate change to or S cu…

1. (8 points) Consider the economy of Avataria, which can be described by the So

1. (8 points) Consider the economy of Avataria, which can be described by the Solow model. Avatara has the depreciation rates of 6% and the production function 1434 (a) Show that …

1. (8 points) Suppose you have $300 to spend on either Baseballs (B) or Baseball

1. (8 points) Suppose you have $300 to spend on either Baseballs (B) or Baseball Gloves (G). Baseballs cost $12 each and Gloves cost $60 each. Using a graph, illustrate your budge…

1. (8 points) Suppose you have $300 to spend on either Baseballs (B) or Baseball

1. (8 points) Suppose you have $300 to spend on either Baseballs (B) or Baseball Gloves (G). Baseballs cost $12 each and Gloves cost $60 each. Using a graph, illustrate your budge…

1. (8 points) Suppose you have $300 to spend on either Baseballs (B) or Baseball

1. (8 points) Suppose you have $300 to spend on either Baseballs (B) or Baseball Gloves (G). Baseballs cost $12 each and Gloves cost $60 each. Using a graph, illustrate your budge…

1. (8 points) Suppose you have $300 to spend on either Baseballs (B) or Baseball

1. (8 points) Suppose you have $300 to spend on either Baseballs (B) or Baseball Gloves (G). Baseballs cost $12 each and Gloves cost $60 each. Using a graph, illustrate your budge…

1. (8 pts.) The XYZ Company is a profit-maximizing firm with a monopoly in the p

1. (8 pts.) The XYZ Company is a profit-maximizing firm with a monopoly in the production of UIC sweatshirts.  The firm sells UIC sweatshirts for $25 each.  We can conclude, there…

1. (9 points) Consider a firm that uses capital (K) and labor (L) to generate un

1. (9 points) Consider a firm that uses capital (K) and labor (L) to generate units of output (). Output is sold in a purely competitive market at price p. The firm's production f…

1. (9 pts). Consider the following production functions for two countries Countr

1. (9 pts). Consider the following production functions for two countries Country A and Country a Assume that output is the same in both countries, L.e., YA-Y100. The capital inpu…

1. (Arbitrage) A supplier is selling hammers in two cities, Pleasantville and Ha

1. (Arbitrage) A supplier is selling hammers in two cities, Pleasantville and Happy Valley. It costs him $5.00 per hammer delievered in each city. Let P1 be the price of hammers i…

1. (Arbitrage) A supplier is selling hammers in two cities, Pleasantville and Ha

1. (Arbitrage) A supplier is selling hammers in two cities, Pleasantville and Happy Valley. It costs him $5.00 per hammer delievered in each city. Let p1 be the price of hammers i…

1. (Arbitrage) A supplier is selling hammers in two cities, Pleasantville and Ha

1. (Arbitrage) A supplier is selling hammers in two cities, Pleasantville and Happy Valley. It costs him $5.00 per hammer delievered in each city. Let p1 be the price of hammers i…

1. (DE Chapter 3, question 4, + modifications) 1.1. Suppose that as a professor

1. (DE Chapter 3, question 4, + modifications) 1.1. Suppose that as a professor in India my salary is Rs 100,000 per year and that I get a raise of Rs 1,000 per year. Suppose that…

1. (Demand Under Perfect Competition) What type of demand curve does a perfectly

1. (Demand Under Perfect Competition) What type of demand curve does a perfectly competitive firm face? Why? 2. Explain the different options a firm has to minimize losses in the …

1. (Fiat Money) Most economists believe that the better fiat money serves as a s

1. (Fiat Money) Most economists believe that the better fiat money serves as a store of value, the more acceptable it is. What does this statement mean? How could people lose fait…

1. (Figure: Monopoly Model) Look at the figure Monopoly Model. When the firm is

1. (Figure: Monopoly Model) Look at the figure Monopoly Model. When the firm is in equilibrium (that is, maximizing its economic profit), its total cost is the area of rectangle: …

1. (Law of Diminishing Marginal Utility) S ome restaurants offer “all you can ea

1. (Law of Diminishing Marginal Utility) Some restaurants offer “all you can eat” meals. How is this practice related to diminishing marginal utility? What restrictions must the r…

1. (Long-Run Industry Supply) Why does the long-run industry supply curve for an

1. (Long-Run Industry Supply) Why does the long-run industry supply curve for an increasing-cost industry slope upward? What causes the increasing costs in an increasing-cost indu…

1. (Mishkin 13.5) Why do property and casualty insurance companies have large ho

1. (Mishkin 13.5) Why do property and casualty insurance companies have large holdings of municipal bonds, whereas life insurance companies do not? 2. (Mishkin 13.7) "In contrast …

1. (Mishkin 16.5) Which entities in the Federal Reserve System control the disco

1. (Mishkin 16.5) Which entities in the Federal Reserve System control the discount rate? Reserve requirements? Open market operations? 2. (Mishkin 16.15) The Fed is the most inde…

1. (NOTE: You do not need a cash flow diagram for this problem.) Chemcut Corpora

1. (NOTE: You do not need a cash flow diagram for this problem.) Chemcut Corporation purchased new office furniture with an estimated useful life of 12 years. Cost of the furnitur…

1. (PM, PA, PB) per firework 2. (PM, PB, PA) is a point 3. (horizontal, vertical

1. (PM, PA, PB) per firework 2. (PM, PB, PA) is a point 3. (horizontal, vertical) summation VALERIE: Hi, Shen, before I begin my homework assignment on public goods and common res…

1. (PPP) Richland and Poorland each have two industries, traded TVs and nontrade

1. (PPP) Richland and Poorland each have two industries, traded TVs and nontraded house maintenance. The world price of TVs is RL$100 (RLS = Richland dollar). Assume for now that …

1. (PPP) Richland and Poorland each have two industries, traded TVs and nontrade

1. (PPP) Richland and Poorland each have two industries, traded TVs and nontraded house maintenance. The world price of TVs is RL$100 (RLS = Richland dollar). Assume for now that …

1. (Points: 0.25) A primary objective of labor unions is to a. secure equal pay

1. (Points: 0.25) A primary objective of labor unions is to a. secure equal pay for its members. b. seek better pay and improved work conditions. c. have equal power with their em…

1. (Points: 1.0) Which of the following statements about the short-run is true?

1. (Points: 1.0) Which of the following statements about the short-run is true? 1. Average variable cost increases as output increases. 2. Average fixed cost decreases as output i…

1. (Points: 1.0) Which of the following statements about the short-run is true?

1. (Points: 1.0) Which of the following statements about the short-run is true? 1. Average variable cost increases as output increases. 2. Average fixed cost decreases as output i…

1. (Repeated Bertrand Game) Two firms are playing an infinitely repeated Bertran

1. (Repeated Bertrand Game) Two firms are playing an infinitely repeated Bertrand game, each with the same marginal cost 20. The market demand function is given by P=150-Q. The fi…

1. (Section 11.2) Suppose a new drug can cure cancer. It costs a few cents to ma

1. (Section 11.2) Suppose a new drug can cure cancer. It costs a few cents to make the pill, and one pill can stop a malignant growth with zero side effects. The drug goes on sale…

1. (TCO 1) Our basic economic problem would be solved if (Points: 3) Everyone wa

1. (TCO 1) Our basic economic problem would be solved if (Points: 3) Everyone was given $1 Million. Our population stopped growing. All sickness and disease were wiped out. Our wa…