Economics

2. (8 points) A worker is deciding how long to stay in coo Assume that the only

2. (8 points) A worker is deciding how long to stay in coo Assume that the only cost of schooling is foregone earnings and that the worker lives forever. Let r denote the discount…

2. (8 points) A worker is deciding how long to stay in coo Assume that the only

2. (8 points) A worker is deciding how long to stay in coo Assume that the only cost of schooling is foregone earnings and that the worker lives forever. Let r denote the discount…

2. (8 points) For Each of the following observations, check to see if the choice

2. (8 points) For Each of the following observations, check to see if the choices satisfy the Weak Axiom of Revealed Preference (WARP). If it does satisfy WARP, give as much infor…

2. (Figure: Loanable Funds) The accompanying graph shows the market for loanable

2. (Figure: Loanable Funds) The accompanying graph shows the market for loanable funds in equilibrium. Which of the following might produce a new equilibrium interest rate of 8% a…

2. (Level A) Represent the following strategic interactions using payoff matrix/

2. (Level A) Represent the following strategic interactions using payoff matrix/matrices (a) A couple (a she and a he) is going out for an evening. They have two options: watching…

2. (Perfect Competition) Individual firms operating in the market for widgets ha

2. (Perfect Competition) Individual firms operating in the market for widgets have costs given by C(q) = 1000 + 10q°. The market demand function is given by D(p) = 40, 000 – 100p.…

2. (Points: 1.0) In an industry characterized by constant cost (across the indus

2. (Points: 1.0) In an industry characterized by constant cost (across the industry), the long run market supply curve is 1. decreasing 2. horizontal 3. increasing 4. indeterminat…

2. (Points: 2) Assume that a competitive constant-cost industry is in long-runeq

2. (Points: 2) Assume that a competitive constant-cost industry is in long-runequilibrium when market demand suddenly decreases. Which of thefollowing statements is incorrect? a. …

2. (Table: Marie\'s Textbook Company) Marie has a small publishing company that

2. (Table: Marie's Textbook Company) Marie has a small publishing company that produces textbooks. She has fixed costs of $1800 per month and hires workers (assume the only thing …

2. (The IS-LM-PC model): Suppose that the following behavioral relations charact

2. (The IS-LM-PC model): Suppose that the following behavioral relations characterize the goods market in period t: (i)C1 = 60 + 0.5 YD, (ii)I| = 90 + 0.25Y1-200(rl + XI) (iii) G …

2. (a) Consider a perfectly competitive firm with the following total cost funct

2. (a) Consider a perfectly competitive firm with the following total cost function in the short run: <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" …

2. (a) Describe a necessary and a sufficient condition for a long-run relationsh

2. (a) Describe a necessary and a sufficient condition for a long-run relationship to exist between two variables X and Y.5 (b) Suppose you want to test for a cointegrating (long-…

2. (a) True/false/uncertain? i. Every point in the 95% condence set of an F-test

2. (a) True/false/uncertain? i. Every point in the 95% condence set of an F-test necessarily falls within the 99% condence set for the same F-test. (b) Suppose a researcher adds a…

2. *) (1+1+(1+1)+1+1-6) According to the household fertility theory, the decisio

2. *) (1+1+(1+1)+1+1-6) According to the household fertility theory, the decision mechanism for having an additional child involves calculating the private economic benefits and c…

2. 00) Graph below the production possibility frontier for X and Y. Assuming the

2. 00) Graph below the production possibility frontier for X and Y. Assuming the country is in autarky and produces much more X than Y, select a point as the country's current eff…

2. 1 value: .00 points How would each of the following be likely to affect the v

2. 1 value: .00 points How would each of the following be likely to affect the value of the dollar, all else being equal? a. The European Central Bank becomes less concerned about…

2. 1. Because of the problem of lags, monetary authorities should probably respo

2. 1. Because of the problem of lags, monetary authorities should probably respond to conditions: a. Immediately as they arise. b. Expected to exist in the future. c. In the recen…

2. 20 MC ATC 16 12 MR 20 40 0 8100 Quantity (pizzas per day The above figure sho

2. 20 MC ATC 16 12 MR 20 40 0 8100 Quantity (pizzas per day The above figure shows Antonia's sandwich shop which is a monopolistic competitive firm. Answer and explain your answer…

2. 3. 4. ince 1953 the United States has imposed a quota to limit the imports of

2. 3. 4. ince 1953 the United States has imposed a quota to limit the imports of peanuts The figure to the right ilustrates the impact of the quota Price pound What is the reducti…

2. 3. Indicate whether the following statement best describes a corporation, a s

2.   3.   Indicate whether the following statement best describes a corporation, a sole proprietorship, or a partnership. a.   Liability is limited to the amount invested. b.   Un…

2. 6 points]. As a new engineer at Fisher Price, you are eager to understand the

2. 6 points]. As a new engineer at Fisher Price, you are eager to understand the nuances of the two product lines for which you are now responsible. You have only been able to col…

2. A Chinese official is considering construction of a gondola lift system that

2. A Chinese official is considering construction of a gondola lift system that transports visitors from the tops of the mountain peaks to the valley at one of the National Forres…

2. A Federal Reserve Bank\'s balance sheet Aa Aa Suppose that the Boston Federal

2. A Federal Reserve Bank's balance sheet Aa Aa Suppose that the Boston Federal Reserve Bank currently has $58,625,000,000 in Federal Reserve notes outstanding, $10,025,000,000 in…

2. A Firm is about to begin pilot plant operation, and it could add an optional

2. A Firm is about to begin pilot plant operation, and it could add an optional heat exchanger unit. A unit is now available for $ 30,000, and it is estimated that heat exchanger …

2. A business has been created to provide needed services to its market. As the

2. A business has been created to provide needed services to its market. As the only provider of this service, it functions as a monopoly, with the ability to set prices and havin…

2. A competitive refining industry produces one unit of waste (X) for each unit

2. A competitive refining industry produces one unit of waste (X) for each unit of refined output (Q). That is, X = Q. The industry disposes of the waste by releasing it into the …

2. A country has the per-worker production function where yt is output per worke

2. A country has the per-worker production function where yt is output per worker and kt is the capital-labor ratio. The savings function is given as follows S = 0.2% where S is t…

2. A decision at the margin Dmitri is a hard-working college junior. One Thursda

2. A decision at the margin Dmitri is a hard-working college junior. One Thursday, he decides to work nonstop until he has answered 100 practice problems for his chemistry course.…

2. A duopoly example Aa Aa Suppose that there is a town in which only two of the

2. A duopoly example Aa Aa Suppose that there is a town in which only two of the residents, Zach and Bette, own wells that produce water safe for drinking, and suppose that Zach a…

2. A duopoly example suppose that there is a town in which only two of the resid

2. A duopoly example suppose that there is a town in which only two of the residents, Stan and Eleanor, own weils that produce water sofe for drinking, and suppose that Stan and E…

2. A firm has the production function fx, y)-X/4 yi/4, where X is the amount of

2. A firm has the production function fx, y)-X/4 yi/4, where X is the amount of factor x used and Y he vertical is the amount of factor y used. On a diagram we put X on the horizo…

2. A firm is considering the decision of investing in new plants. The following

2. A firm is considering the decision of investing in new plants. The following is the profit payoff matrix under three conditions: it does not expand, it builds two new plants, o…

2. A firm is using 25 units of labor and 60 units of capital to produce 10,000 u

2. A firm is using 25 units of labor and 60 units of capital to produce 10,000 units of output. At this combination the marginal product of labor is 20 and the marginal product of…

2. A firm\'s demand function for product X has the following equation: Cr = 1420

2. A firm's demand function for product X has the following equation: Cr = 1420-20Py-10Py + 0.02M+ 0.04A where Qx is the quantity purchased, Px is the price of X, Py is the price …

2. A graphical comparison of tariffs and quotas Aa Aa Alagir and Ertil are small

2. A graphical comparison of tariffs and quotas Aa Aa Alagir and Ertil are small countries that protect their economic growth from rapidly advancing globalization by limiting the …

2. A manufacturing company has the following utility cost distribution? Month Ja

2. A manufacturing company has the following utility cost distribution? Month January February March April May Utility cost(S) Unit produced 4,000 5000 9,000 0,000 15,000 400 800 …

2. A merger of several firms operating in different industries-for example, a tr

2. A merger of several firms operating in different industries-for example, a trucking company, a chain, and a brokerage house-is called: A. an integrated merger. B. a conglomerat…

2. A monopoly faces an inverse demand curve, P = A -Q in market A. The total cos

2. A monopoly faces an inverse demand curve, P = A -Q in market A. The total cost function is C(R) = 2Q+ 2401, and the opportunity cost of doing business in market A is normalized…

2. A national fast food restaurant chain has recently made the decision that the

2. A national fast food restaurant chain has recently made the decision that their breakfast menu will now be available all day long. The product management team overseeing the br…

2. A new condensate-recovery system is being considered to replace an antiquated

2. A new condensate-recovery system is being considered to replace an antiquated system at Arun Tech. It is estimated that the new system will cost $600,000 to install now. Howeve…

2. A new tvpe of technology has been invented that allows the wvidget factory to

2. A new tvpe of technology has been invented that allows the wvidget factory to produce widgets using capital instead of labor. The daily production choices faced by the firm are…

2. A perfectly competitive firm hires capital and labor at competitive price r a

2. A perfectly competitive firm hires capital and labor at competitive price r and w. In the long run, the firm operates at a minimum average cost. Total cost is the sum of the re…

2. A perfectly competitive, constant-cost industry has a market demand curve P =

2. A perfectly competitive, constant-cost industry has a market demand curve P = 50 – (1/7)Q. Each firm has a U-shaped long-run average cost function with a minimum of $10. The ef…

2. A perfectly competitive, constant-cost industry has a market demand curve P =

2. A perfectly competitive, constant-cost industry has a market demand curve P = 50-(1 /7) Each firm has a U-shaped long-run average cost function with a minimum of $10. The effic…

2. A price cap regulation is often combined with _______ in case the regulator s

2. A price cap regulation is often combined with _______ in case the regulator sets the cap too high. A.earnings sharing regulation B.marginal cost pricing C.average cost pricing …

2. A selfless person approaches Jones and Smith with a $100 bill and offers to s

2. A selfless person approaches Jones and Smith with a $100 bill and offers to sell it to the highest bidder, but both the winning and losing bidders must pay her their bids. So i…

2. A small construction company owns a generator which was purchased for $11 ,00

2. A small construction company owns a generator which was purchased for $11 ,000 three years ago. Its current salvage value is $2400 and that s expected to fall to $1400 next yea…

2. A) If the price o entertainment is 12 and the price of necessities is 4, and

2. A) If the price o entertainment is 12 and the price of necessities is 4, and the MRS of necessities for entertainment expressed by Pam is 1/2, is Pam a utility maximizer? How d…

2. ABC Industries manufactures laptops. It has two options to purchase motherboa

2. ABC Industries manufactures laptops. It has two options to purchase motherboards. Cost and savings estimates are made, but the savings estimate is unreliable at this time. Use …

2. According to Irving Fisher’s theory of interest, the real rate of interest eq

2. According to Irving Fisher’s theory of interest, the real rate of interest equal the nominal rate of interest minus the expected rate of inflation; since the expected rate of i…