Economics

1. Supply-side economics stress that: a. aggregate demand is the major determina

1. Supply-side economics stress that: a. aggregate demand is the major determinant of real output andaggregate employment. b. tax rates are not a major determinant of real output …

1. Supply-side economics stress that: a. aggregate demand is the major determina

1. Supply-side economics stress that: a. aggregate demand is the major determinant of real output andaggregate employment. b. tax rates are not a major determinant of real output …

1. Suppose Airbus (firm A) and Boeing (firm B) are the only two companies in the

1. Suppose Airbus (firm A) and Boeing (firm B) are the only two companies in the aircraft industry and they choose quantities of outputs to compete. The industry demand and cost c…

1. Suppose Country A is a small open economy that takes world prices as given. A

1. Suppose Country A is a small open economy that takes world prices as given. A) what would be the effect on wages and rents in A if it were to experience an inflow of foreign ca…

1. Suppose Dan received $200 for his birthday. If Dan spent $150 and saved $50:

1. Suppose Dan received $200 for his birthday. If Dan spent $150 and saved $50: a. what percentage of the $200 did Dan spend? Answer: b. what percentage of the $200 did Dan save? …

1. Suppose Dell finds the relationship between the average total cost of produci

1. Suppose Dell finds the relationship between the average total cost of producing notebook computers and the quantity of notebook computers produced is as shown by the figure to …

1. Suppose Gina and Henry play two rounds of the ultimatum game. In the first ro

1. Suppose Gina and Henry play two rounds of the ultimatum game. In the first round they play for $10; in the second round they play for $1,000. In the first round Gina suggests a…

1. Suppose Home is a small open economy, exporting wheat to the world market. At

1. Suppose Home is a small open economy, exporting wheat to the world market. At the world price of $100 per ton, Home growers export 20 tons. Now suppose the Home government deci…

1. Suppose Home is a small open economy, exporting wheat to the world market. At

1. Suppose Home is a small open economy, exporting wheat to the world market. At the world price of $100 per ton, Home growers export 20 tons. Now suppose the Home government deci…

1. Suppose Jacqueline likes to do two things with her disposable income: ride po

1. Suppose Jacqueline likes to do two things with her disposable income: ride ponies and blow things up. The price of each pony is $200 and the price of each stick of dynamite is …

1. Suppose John now has W = $4900 and foresees that there is 50% chance encounte

1. Suppose John now has W = $4900 and foresees that there is 50% chance encountering a big loss of $4800 in the future. Assuming that John's preference can be described by the uti…

1. Suppose Marginal Propensity to consume equals 0.75. What would be the change

1. Suppose Marginal Propensity to consume equals 0.75. What would be the change in the equilibrium level of output if the Government increases its spending from $400 b to $460 b? …

1. Suppose Nike and Adidas spend enormous sums of money every year to promote th

1. Suppose Nike and Adidas spend enormous sums of money every year to promote their athletic wear, hoping to steal customers from each other. Furthermore, assume each year they ha…

1. Suppose a Keynesian country has a consumption function: C = 100 + 0.9(Y-T) In

1. Suppose a Keynesian country has a consumption function: C = 100 + 0.9(Y-T) Investment (I) is 100, the government expenditure (G) is 100 and net exports (Xn) are 50.  Tax revenu…

1. Suppose a Pharmaceutical company\'s production function is given by: q-10LK-0

1. Suppose a Pharmaceutical company's production function is given by: q-10LK-09K2-0.3L. where q represents the weekly quantity of pills produced and K and L are weekly capital an…

1. Suppose a business finds that output varies according to the following schedu

1. Suppose a business finds that output varies according to the following schedule as it adds more workers: Workers Total Product Marginal Product Average Product 0 0 — 1 10 10 2 …

1. Suppose a competitive industry in in long-run equilibrium; then the price of

1. Suppose a competitive industry in in long-run equilibrium; then the price of a substitute good (in consumption) decreases. What happens in the short run? a. The market demand c…

1. Suppose a decrease in consumers\' income causes a decrease in the demand for

1. Suppose a decrease in consumers' income causes a decrease in the demand for chicken and an increase in the demand for potatoes. Which good is inferior and which is normal? How …

1. Suppose a firm is currently maximizing its profits (i.e., following the MR =

1. Suppose a firm is currently maximizing its profits (i.e., following the MR = MC rule). Assuming that it wants to continue maximizing its profits, if its fixed costs increase, i…

1. Suppose a firm that sells a variety of athletic shoes is trying to start a pa

1.  Suppose a firm that sells a variety of athletic shoes is trying to start a pattern of price leadership in its market.  Which os the following is not a problem this firm migh h…

1. Suppose a market basket of goods and services includes the goods below for tw

1. Suppose a market basket of goods and services includes the goods below for two successive years. What is the consumer price index for 2013? Explain. 2. Conduct an Internet sear…

1. Suppose a market demand function is specified as follows: Qd= 1000-4P (a) Est

1. Suppose a market demand function is specified as follows: Qd= 1000-4P (a) Estimate the total revenue (b) What is the marginal revenue? (c) Evaluate the price elasticity of dema…

1. Suppose a monopoly can separate its customers into two groups. If the monopol

1. Suppose a monopoly can separate its customers into two groups. If the monopoly practices price discrimination, it will charge the lower price to the group with:    a)    the fe…

1. Suppose a monopoly can separate its customers into two groups. If the monopol

1. Suppose a monopoly can separate its customers into two groups. If the monopoly practices price discrimination, it will charge the lower price to the group with: a)    the fewer…

1. Suppose a new, improved variety of soybeans is developed which produces more

1. Suppose a new, improved variety of soybeans is developed which produces more soybeans per acre than the existing varieties. As the soybean market adjusts to this innovation, th…

1. Suppose a public good that is worth $1 billion is not produced by the market,

1. Suppose a public good that is worth $1 billion is not produced by the market, so the government provides it, but at a cost of $3 billion. This attempt to correct a market failu…

1. Suppose a single firm has for a particular type of labor the marginal-revenue

1.     Suppose a single firm has for a particular type of labor the marginal-revenue-product schedule given in the following table. Number of units of labor MRP of labor 1 $15 2 1…

1. Suppose all frms in a competitive market, operating in the log run, etheloing

1. Suppose all frms in a competitive market, operating in the log run, etheloing cost-functions C, (Vi)-y? +4, and market demand is given by D(p-42-p. (a) What is the long-run com…

1. Suppose an investment project has an NPV of $150 million if it becomes succes

1. Suppose an investment project has an NPV of $150 million if it becomes successful and an NPV of ?$50 million if it is a failure. What is the minimum probability of success abov…

1. Suppose annual salaries for sales associates from a particular store have a m

1.      Suppose annual salaries for sales associates from a particular store have a mean of $32,500 and a standard deviation of $2,500. Calculate and interpret the z-score for a s…

1. Suppose annual salaries for sales associates from a particular store have a m

1. Suppose annual salaries for sales associates from a particular store have a mean of $32,500 and a standard deviation of $2,500. Calculate and interpret the z-score for a sales …

1. Suppose as a manager of a profitable department store you are con- fronted wi

1. Suppose as a manager of a profitable department store you are con- fronted with a pricing problem. You have two types of customers: a high-end type that are willing to pay a pr…

1. Suppose as a manager of a profitable department store you are confronted with

1. Suppose as a manager of a profitable department store you are confronted with a pricing problem. You have two types of customers: a high-end type that are willing to pay a pric…

1. Suppose banks do not hold excess reserves and the public does not hold cash.

1. Suppose banks do not hold excess reserves and the public does not hold cash. For each of the following monetary policies, compute the change in money supply. Show your steps an…

1. Suppose company A is a monopolist supplier of aircraft engines. Company B is

1. Suppose company A is a monopolist supplier of aircraft engines. Company B is considering entering the market. Both the companies have to invest in capital investment that is di…

1. Suppose country A has a GDP of 1 trillion U.S. dollars and suppose this GDP g

1. Suppose country A has a GDP of 1 trillion U.S. dollars and suppose this GDP grows at a constant rate of 3% per year. a. Estimate what the GDP would be 10 years from now. b. Est…

1. Suppose demand for labor is given by: L=-50w+450 And supply is given by: L=10

1. Suppose demand for labor is given by: L=-50w+450 And supply is given by: L=100w Where L represents the number of people employed and w is the real wage rate per hour. a. What w…

1. Suppose for a student producing \"Study Hours\" Q. Total Benefit-40Q, and Tot

1. Suppose for a student producing "Study Hours" Q. Total Benefit-40Q, and Total Cost = 2.5Q2. Assume that the student is rational, that the Total Benefit and Total Cost of Q are …

1. Suppose four firms face the same wage and hourly price of capital. Which of t

1. Suppose four firms face the same wage and hourly price of capital. Which of the following firms will use the most labor? A. Firm 1: Price of outpu: $5; Marginal Product of Labo…

1. Suppose in a two-good society with Good X and Good Y, a consumer has a utilit

1. Suppose in a two-good society with Good X and Good Y, a consumer has a utility function of U(x, y)- min{2x,y], where r is the number of Good X the consumer consumes and y is th…

1. Suppose in the first quarter of the year, Real GDP was $400 billion; in the s

1. Suppose in the first quarter of the year, Real GDP was $400 billion; in the second quarter it was $398 billion; in the third quarter it was $399 billion; and in the fourth quar…

1. Suppose interest rates rise in the United States, but they don\'t rise in oth

1. Suppose interest rates rise in the United States, but they don't rise in other nations. What is the impact on the flow of financial capital, the value of the dollar, and U.S. n…

1. Suppose labor supply can be described as ES -0.1w -2,000 where w is yearly sa

1. Suppose labor supply can be described as ES -0.1w -2,000 where w is yearly salary a. How many workers are willing to work when the yearly salary is $20,000? b. How many workers…

1. Suppose people in households decide to spend less. How will this impact an ec

1. Suppose people in households decide to spend less. How will this impact an economy? A) It will have no impact since this group makes up a small portion of any economy. B) It wi…

1. Suppose person A has $1,000 and person B has $10,000. If they each have a uti

1.      Suppose person A has $1,000 and person B has $10,000. If they each have a utility function of U($) = ln($), what is the ratio of MUa/MUb (marginal utility of person A divi…

1. Suppose pigs ( P ) can be fed corn-based feed ( C ) or soybean-based feed ( S

1. Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production function is P = 2C + 5S.  If the price of corn feed is $2 and the price of so…

1. Suppose spaghetti is an inferior good, then an increase in income will cause.

1. Suppose spaghetti is an inferior good, then an increase in income will cause... Question 1 options: a rightward shift of the demand curve a leftward shift of the demand curve a…

1. Suppose that Britain and Portugal produce two goods, wine and cloth using lab

1. Suppose that Britain and Portugal produce two goods, wine and cloth using labor as the only factor in production. England is endowed with 200 workers and Portugal is endowed wi…

1. Suppose that Honda (a Japanese company) develops a new car that gets 100 mile

1.   Suppose that Honda (a Japanese company) develops a new car that gets 100 miles a gallon and only cost $1,000 and that American consumers love this car. Under free trade, this…

1. Suppose that I make a deposit of $10,000 into NBD. Assume the minimum require

1. Suppose that I make a deposit of $10,000 into NBD. Assume the minimum required reserve ratio set by the Fed is .125. a. Fill in the balance sheet below assuming that NBD does n…