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International trade is a topic that is widely excepted as good by economist as well as the World Trade Organization. Why do you believe that it is such a controversial issue in politics?
One of the major determinants of increasing real GDP per capita and therefore a
country’s standard of living is
As newly appointed “Energy Czar,” your goal is to reduce the total demand for resi- dential
heating fuel in your state. You must choose one of three legislative proposals designed to
accomplish this goal:
(a) a tax that would effectively increase the price of residential heating fuel by $1,
(b) a subsidy that would effectively reduce the price of natural gas by $3, or
(c) a tax that would effectively increase the price of electricity (produced by hydroelectric
facilities) by $4. To assist you in your decision, an econo- mist in your office has estimated
the demand for residential heating fuel using a linear demand specification. The regression
results are presented as follows.
What is the Keynesian prescription for a government that is managing an economy that is contracting and there is high unemployment? Mention one of the assumptions of Keynesian economics
Suppose that a firm's labor demand curve is given by w = 20 - L. Currently, a firm pays its workers $10. The production function for the firm is y = 4L, where y is the output. The firm sells its product for $3.
The firm decides to shift to an efficiency wage model, where they pay workers $15. The new production function with the efficiency wage is y = 2L^2. The firm still sells its product for $3. How much higher are profits for the firm with the efficiency wage, compared to without?
Suppose that labor demand is given by w = 80 - L, while labor supply is given by w = L. Suppose that, during a recession, labor demand decreases to w = 50 - L. If there are sticky wages, how many people become unemployed?
The nation of Leisureland can produce two goods, bicycles and bowling balls.
The western region of Leisureland can, if it devotes all its resources to bicycle production, produce 100 bicycles per month. Alternatively, it could devote all its resources to bowling balls and produce 400 per month—or it could produce any combination of bicycles and bowling balls lying on a straight line between these two extremes.
The eastern region of Leisureland can, if it devotes all its resources to bicycle production, produce 400 bicycles per month. Alternatively, it could devote all its resources to bowling balls and produce 100 per month—or it could produce any combination of bicycles and bowling balls lying on a straight line between these two extremes.
What it is the opportunity cost of producing an additional bowling ball measured in terms of forgone bicycles in western Leisureland?
What would the yield be on the 2.0 percent, $1000, 10-year Treasury bond if the market price of the bonds were
925$
$750?
$1,100?
Answer all three questions with showing proof of your work for full credit. Round all answers to one decimal place.
Assume that 2018 is the base year. The quantity consumed in each basket is ( 3 Cell Phones, 4 Shoes)
- What is the CPI in 2019?
- What is the CPI in 2020?
- What is the inflation rate from 2018 to 2019?
YearPrice of Cell PhonesPrice of Shoes2018$500$852019$575$892020$625$95
assume the following economy
autonomous consumption =£3m
marginal propensity to consume= 0.8
business investment = 52
government spending =£127m
income tax rate = 40%
A. Find equilibrium size of income Y.
B. Identify whether the government runs a budget deficit or a budget surplus
