Economics

Suppose that the interest rate in the United States is 4%, in Japan it is 7%, an

Suppose that the interest rate in the United States is 4%, in Japan it is 7%, and financial assets in the two countries are equal in risk. Refer to the scenario Japan and the Unit…

Suppose that the interest rate on a one year bond is 7 percent today and the int

Suppose that the interest rate on a one year bond is 7 percent today and the intrest rates are exected on one yea bonds in the future are 6 percent in one year, 5 percent in two y…

Suppose that the inverse demand for San Francisco cable car rides is p= 10-1000

Suppose that the inverse demand for San Francisco cable car rides is p= 10-1000 where p is the price per ride and Q is the number of rides per day. Suppose the objective of San Fr…

Suppose that the inverse market demand for pumpkins is given by P = 10-0.05Q. Pu

Suppose that the inverse market demand for pumpkins is given by P = 10-0.05Q. Pumpkins can be grown by anybody at a constant marginal cost of a $1. If there are lots of pumpkin gr…

Suppose that the investment demand curve in a certain economy is such that inves

Suppose that the investment demand curve in a certain economy is such that investment declines by $130 billion for every 1 percentage point increase in the real interest rate. Als…

Suppose that the investment demand curve in a certain economy is such that inves

Suppose that the investment demand curve in a certain economy is such that investment declines by $120 billion for every 1 percentage point increase in the real interest rate. Als…

Suppose that the investment demand curve in a certain economy is such that inves

Suppose that the investment demand curve in a certain economy is such that investment declines by $130 billion for every 1 percentage point increase in the real interest rate. Als…

Suppose that the investment demand curve in a certain economy is such that inves

Suppose that the investment demand curve in a certain economy is such that investment declines by $120 billion for every 1 percentage point increase in the real interest rate. Als…

Suppose that the investment demand curve in a certain economy is such that inves

Suppose that the investment demand curve in a certain economy is such that investment declines by $110 billion for every 1 percentage point increase in the real interest rate. Als…

Suppose that the investment demand curve in a certain economy is such that inves

Suppose that the investment demand curve in a certain economy is such that investment declines by $100 billion for every 1 percentage point increase in the real interest rate Also…

Suppose that the investment demand curve in a certain economy is such that inves

Suppose that the investment demand curve in a certain economy is such that investment declines by $100 billion for every 1 percentage point increase in the real interest rate. Als…

Suppose that the investment demand curve in a certain economy is such that inves

Suppose that the investment demand curve in a certain economy is such that investment declines by $100 billion for every 1 percentage point increase in the real interest rate. Als…

Suppose that the labor force participation rate decreases, output will decrease

Suppose that the labor force participation rate decreases, output will decrease because the employment level increases moving the economy out along the production function the pro…

Suppose that the labor market for high school chemistry teachers is initially in

Suppose that the labor market for high school chemistry teachers is initially in equilibrium. Chemistry teachers use laboratory chemicals as an important part of their jobs. New e…

Suppose that the letter grade earned on a test for each student in a class depen

Suppose that the letter grade earned on a test for each student in a class depends upon how well he/she does relative to other students in the class. This exhibit shows a prisoner…

Suppose that the level of frictional unemployment is 2 percent, the level of str

Suppose that the level of frictional unemployment is 2 percent, the level of structural unemployment is 3 percent, and the level of cyclical unemployment is 3 percent. Using Okun'…

Suppose that the local moving company has: q = 6L^0.25 K^0.5 where q: is the num

Suppose that the local moving company has: q = 6L^0.25 K^0.5 where q: is the number of boxes moved per day, L is labor (measured in worker hours), and Kis the number of moving tru…

Suppose that the long-run world demand and supply elasticities of crude oil are

Suppose that the long-run world demand and supply elasticities of crude oil are -0.906 and 0.515, respectively. The current long-run equilibrium price is $30 per barrel and the eq…

Suppose that the manager of a firm operating in a perfectly competitive market h

Suppose that the manager of a firm operating in a perfectly competitive market has estimated the average variable cost function to be AVC = 4.0-00024Q + 0.00000602 Fixed costs are…

Suppose that the marginal cost of a one-way airfare is $30. A. If the airline pr

Suppose that the marginal cost of a one-way airfare is $30. A. If the airline practices perfect price discrimination, how many customers will purchase one-way airfare? How much pr…

Suppose that the marginal cost of producing cottonseed meal is $170 per ton. If

Suppose that the marginal cost of producing cottonseed meal is $170 per ton. If the cottonseec oil industry is perfectly competitive and in long run equilibrium, then the average …

Suppose that the marginal cost of producing output, q, in the short-run for a co

Suppose that the marginal cost of producing output, q, in the short-run for a competitive firm is MC = 10 + 8q. The market price of the firm’s product is $25. a. (2 pts) What leve…

Suppose that the marginal cost of producing output, q, in the short-run for a co

Suppose that the marginal cost of producing output, q, in the short-run for a competitive firm is MC = 10 + 8q. The market price of the firm’s product is $25. a. (2 pts) What leve…

Suppose that the marginal damages to society from air pollution are MD=e-25, whe

Suppose that the marginal damages to society from air pollution are MD=e-25, where e is the level of air pollution. Suppose also that the marginal cost of reducing the air polluti…

Suppose that the marginal product of the last worker employed by a firm is 40 un

Suppose that the marginal product of the last worker employed by a firm is 40 units of output per day and the daily wage that the firm must pay is $20, while the marginal product …

Suppose that the marginal propensity to consume (MPC) is .75 and there is an inc

Suppose that the marginal propensity to consume (MPC) is .75 and there is an increase in investment spending of $50,000. As a result, equilibrium real Gross Domestic Product (GDP)…

Suppose that the marginal propensity to consume in an economy is equal to 0.80 a

Suppose that the marginal propensity to consume in an economy is equal to 0.80 and that you are told that investment spending decreases this year by $100. You are asked to calcula…

Suppose that the marginal propensity to consume is 0.95, and investment spending

Suppose that the marginal propensity to consume is 0.95, and investment spending increases by $100 billion. The increase in aggregate demand is: $80 billion, composed of $100 bill…

Suppose that the market demand and supply curves for widgets are given by Demand

Suppose that the market demand and supply curves for widgets are given by Demand Q_D = 50 - P Supply Q_S = -10 + 2 P where Q denotes quantity and P denotes price. Calculate the ma…

Suppose that the market demand for steel in Australia is represented by: Qd = 90

Suppose that the market demand for steel in Australia is represented by: Qd = 90 - 5P. It is also assumed that there is only one firm producing steel (i.e., monopoly) and the firm…

Suppose that the market demand-and-supply curves for the gasoline market are giv

Suppose that the market demand-and-supply curves for the gasoline market are given below. In each case, quantity refers to millions of liters of gasoline/month: Qd is the quantity…

Suppose that the market for candy canes operates under conditions of perfect com

Suppose that the market for candy canes operates under conditions of perfect competition, that it is initially in long-run equilibrium, and that the price of each candy cane is $0…

Suppose that the market for cigarettes in a particular town has the following su

Suppose that the market for cigarettes in a particular town has the following supply and demand curves: QS = P QD = 50-P, where the quantities are measured in thousands of units. …

Suppose that the market for cigarettes in a particular town has the following su

Suppose that the market for cigarettes in a particular town has the following supply and demand curves: Qs = P; Qd = 50 - P with quantities measured in thousands of units. Suppose…

Suppose that the market for eggs in Oswego Coutny is perfectly competitive. Also

Suppose that the market for eggs in Oswego Coutny is perfectly competitive. Also, a just-released study indicates that the cholesterol absorbed by consuming eggs is not as detrime…

Suppose that the market for eggs is perfectly competitive in Fayette Coutny and

Suppose that the market for eggs is perfectly competitive in Fayette Coutny and that a study is released indicating that the cholesterol absorbed in consuming eggs is not as detri…

Suppose that the market for frying pans is a competitive market. The following g

Suppose that the market for frying pans is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectan…

Suppose that the market for microwave ovens is a competitive market. The followi

Suppose that the market for microwave ovens is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. In the short run, at a mar…

Suppose that the market for pizzas in your town is perfectly (or purely) competi

Suppose that the market for pizzas in your town is perfectly (or purely) competitive, with a market price of $14 per pizza in long run equilibrium. A local pizza restaurant, Pizza…

Suppose that the market for polos is a competitive market. The following graph s

Suppose that the market for polos is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. For each price in the following tabl…

Suppose that the market for sports watches is a competitive market. The followin

Suppose that the market for sports watches is a competitive market. The following graph shows the daily cost curves of a firm operating in this market 100 90 80 70 3 60 Proft or L…

Suppose that the market for sweatersis perfectly competitive. The graph below sh

Suppose that the market for sweatersis perfectly competitive. The graph below shows the cost curves ofa typical manufacturer in the market. Use the blue rectangle (circle symbols)…

Suppose that the market for toothbrushes is perfectly competitive and has 100 pr

Suppose that the market for toothbrushes is perfectly competitive and has 100 producers. Out of these producers, 60 are "low-cost" producers whose individual average variable cost…

Suppose that the market supply of crude oil is the sum of the supply from \"larg

Suppose that the market supply of crude oil is the sum of the supply from "large scale" producers and that from "stripper wells". Under the assumption that the market is perfectly…

Suppose that the market supply of crude oil is the sum of the supply from \"larg

Suppose that the market supply of crude oil is the sum of the supply from "large scale" producers and that from "stripper wells". Under the assumption that the market is perfectly…

Suppose that the men\'s suit business is monopolistically competitive. It follow

Suppose that the men's suit business is monopolistically competitive. It follows that in equilibrium, the marginal revenue of any firm in the industry: is greater than the price. …

Suppose that the money demand is given by: Md = PY(0.25 ? i) Suppose that nomina

Suppose that the money demand is given by: Md = PY(0.25 ? i) Suppose that nominal income is $100 and wealth is $500 and that the money supply is set by the central bank at ??s = 2…

Suppose that the money demand is given by: Md = PY(0.25-i) Suppose that nominal

Suppose that the money demand is given by: Md = PY(0.25-i) Suppose that nominal income is $100 and wealth is $500 and that the money supply is set by the central bank at Ms = 20. …

Suppose that the money supply and the nominal GDP for a hypothetical economy are

Suppose that the money supply and the nominal GDP for a hypothetical economy are $96 billion and $384 billion, respectively.   Instructions: Round your answers to 1 decimal place.…

Suppose that the money supply and the nominal GDP for a hypothetical economy are

Suppose that the money supply and the nominal GDP for a hypothetical economy are $96 billion and $336 billion, respectively. What is the velocity of money? Instructions: Round you…