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Question: The first reading you had this semester was I, Pencil. What was the lesson of this reading? How would a tax on lumber affect the coordination of all actors needed to make a pencil? Do you think this would resul ...
Question: In the Heckscher-Ohlin model studied in the slides, suppose that K L = K* L* but preferences may be different between countries. Suppose that the home country has comparative advantages in food. In what country ...
Question: Every week the Federal Reserve announces how quickly the money supply grew in the week ending ten days previously. (There is a ten-day delay because it takes that long to assemble data on bank deposits.) Econom ...
How would I draw the graph of a budget constraint for a family choosing between a public and private school?
Question: Suppose you are CEO of a manufacturing company, and oil prices suddenly double, which boosts the inflation rate by 5%. While your principal job is to keep quarterly earnings rising, you are concerned that a rec ...
Fran has a monthly income of $60. She spends her money making telephone calls (measured in minutes) at a price px and on other composite good y, whose price has been normalized to one, i.e., py = $1. Her mobile phone com ...
Question: The principal economic argument for abolishing the long-term capital gains tax is that it would boost productivity, and hence pay for itself. The principal economic argument against that move is that it would e ...
Question: Is a tax on margarine efficient in the economic sense of the term? Why would margarine producers prefer to have an excise tax impose on both butter and margarine? Would such a tax be more or less efficient than ...
Question: Pham can work as many or as few hours as she wants at the college bookstore for $9 per hour. But due to her hectic schedule, she has just 17 hours per week that she can spend working at either the bookstore or ...
Question: Propose two separate behaviors other than government purchases that could offset the effects of the military spending reduction on total planned expenditure. Be specific in your examples. The response must be t ...
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Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate
Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p
Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As
Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int
Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As