Question: Rules restrict how we interact with others and, therefore, restrict our ability to engage in exchange. Given these are undesirable (from an economic standpoint), what benefits to rules provide us? What is the d ...
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Question: In the Land of Purity, there is only one form of pollution, called "gunk." Table 12.14 shows possible combinations of economic output and reduction of gunk, depending on what kinds of environmental regulations ...
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Question: In order to analyze the effect of imposing tariff at HOME country, (i.e. when it is large enough to exert an influence over world prices), Draw a typical Foreign Market Supply and Demand curves first. Then, dri ...
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Quesyion: Intermediate Microeconomics Suppose that a firm's technology is given by the following production function: f(k, l) = 6k^1/6 l^1/6 Prove that this production function exhibits diminishing marginal product in bo ...
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Question: From 1993 through 1995, compensation per hour in the US rose an average of 2.2% per year, down from 5.2% the previous three years. Much of this represented the disappearance of the efficiency wage. Partly as a ...
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Question: Using the Specific Factors Model (i.e. Labor is mobile but Land and Capital are specific to agriculture and manufacturing) what would be the effect of foreign labor immigration on wage rate and the output of bo ...
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Question: Some critics of discretionary monetary policies used by central banks suggest that there are lag problems in the timing of monetary policy, and there are problems with time inconsistencies, credibility and comm ...
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Question: Consider an economy with the representative consumer, representative firm, and government. Suppose that G = 12. The consumer's preferences over the consumption good and leisure are given by the utility function ...
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Question - The "shadow banking system" is larger (and has become more important to the US money and capital markets) than the commercial banking system. But, unlike commercial banks, many types of "shadow banks" ---money ...
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Question: Suppose a gym faces inverse demand p(qi) = a - bqi from each of N identical customers, and costsrepresented by C(Q) = cQ. Without competition, this would imply that qi = (a- c)/2b , and p = (a+c)/2 . The is one ...
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