Economics

1. Suppose that you consume apples and bananas, and the marginal utility of the

1. Suppose that you consume apples and bananas, and the marginal utility of the last apple consumed is six times the marginal utility of the last banana consumed. However, the pri…

1. Suppose that you work for a merchandiser who sells printers and other compute

1. Suppose that you work for a merchandiser who sells printers and other computer equipment. Suppose further that your company typically purchases large quantities of printers fro…

1. Suppose that, as the price of product X falls from $1.00 to $0.90, the demand

1. Suppose that, as the price of product X falls from $1.00 to $0.90, the demanded quantity of product Y increases from 100 to 110. It can be concluded that goods X and Y are: A. …

1. Suppose the American Medical Association (AMA) wants to improve the quality o

1. Suppose the American Medical Association (AMA) wants to improve the quality of physicians. Give TWO examples of how they could change their licensing policies to accomplish thi…

1. Suppose the Fed announces that interest rates will continue to rise in 2018.

1. Suppose the Fed announces that interest rates will continue to rise in 2018. How would this impact the market for bonds? Would it impact demand or supply? Would it cause an inc…

1. Suppose the Fed decided to use its \"discount rate,\" as an instrument of mon

1. Suppose the Fed decided to use its "discount rate," as an instrument of monetary policy; further suppose that the Fed cuts the discount rate. Ceteris paribus, it follows that b…

1. Suppose the Fed decides to stimulate the economy. Assume there is no cash lea

1.Suppose the Fed decides to stimulate the economy. Assume there is no cash leakage and required reserve ratio is 25% now, and banks have no excess reserves. A. Show how the Fed w…

1. Suppose the Fed decides to stimulate the economy. Assume there is no cash lea

1.Suppose the Fed decides to stimulate the economy. Assume there is no cash leakage and required reserve ratio is 25% now, and banks have no excess reserves. a. Show how the Fed w…

1. Suppose the US implements a trade policy that produces an increase in imports

1. Suppose the US implements a trade policy that produces an increase in imports. a) What special-interest groups in the US will most likely gain from the increased imports? b) Wh…

1. Suppose the de cigarettes is Q = P-3, where P is the price per pack of cigare

1. Suppose the de cigarettes is Q = P-3, where P is the price per pack of cigarettes and M is average weekly income. a. What is the equilibrium price and quantity if M 500? b. Wha…

1. Suppose the demand curve for a product is given as Q = 10 – 2P + Po where P i

1. Suppose the demand curve for a product is given as Q = 10 – 2P + Po where P is the price of the product, Po is the price of another good, and Q is the quantity demanded. Assume…

1. Suppose the demand for baseballs is given by: Qd = 450 – 5P where Qd is the q

1. Suppose the demand for baseballs is given by: Qd = 450 – 5P where Qd is the quantity demanded of baseballs and P is the price of baseballs. a) If the price of baseballs is $9, …

1. Suppose the economy is originally in a steady state and the saving rate is lo

1. Suppose the economy is originally in a steady state and the saving rate is lower than the golden rule saving rate. We know with certainty that a reduction in the saving rate wi…

1. Suppose the equilibrium quantity in the market for widgets is 200 per month w

1. Suppose the equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. As a result, the government is able to…

1. Suppose the federal government has no national debt and spends $100 billion,

1. Suppose the federal government has no national debt and spends $100 billion, while raising only $50 billion in taxes. a. What amount of government bonds will the U.S. Treasury …

1. Suppose the federal government needs to balance the budget, which means that

1. Suppose the federal government needs to balance the budget, which means that when the government spending increases, taxes must increase equally. In this case, government spend…

1. Suppose the following table records the total output and prices for an entire

1. Suppose the following table records the total output and prices for an entire economy. Further, suppose the base year in the following table is 2000. Year Price of soda Quantit…

1. Suppose the government issues bonds to finance an increase in government spen

1. Suppose the government issues bonds to finance an increase in government spending. In the bond market, a. the supply curve shifts right, leading to a decrease in bond prices, a…

1. Suppose the labor force of a country comprises of 5 million employed individu

1. Suppose the labor force of a country comprises of 5 million employed individuals and 1.1 million unemployed individuals. country? What has been the rate of unemployment in this…

1. Suppose the marginal benefit (MB) of national defense is MB = 1,000 - 10Q, wh

1.   Suppose the marginal benefit (MB) of national defense is MB = 1,000 - 10Q, where Q measures units of national defense, for Charlie and MB = 400 - 4Q for Sally. Combining Char…

1. Suppose the marginal product of labor in the economy is given by MPN 0.00216,

1. Suppose the marginal product of labor in the economy is given by MPN 0.00216,000 - N), while the supply of labor is 1000+1000w. That is, N-1000+1000w. (a) Find the equilibrium …

1. Suppose the minimum possible price of constructing homes is $50 per square fo

1. Suppose the minimum possible price of constructing homes is $50 per square foot. As a result of a sharp drop in the demand for home construction, the equilibrium price of home …

1. Suppose the objective of governement polict is to increase an economy\'s grow

1. Suppose the objective of governement polict is to increase an economy's growth and raise citizens' standards of living. Explain in this context the roles of retirement, Social …

1. Suppose the population of Smithtown is 500,000. There are 50,000 people who a

1. Suppose the population of Smithtown is 500,000. There are 50,000 people who are in school full-time and 30,000 retired. We also know that there are 50,000 who stay-at- home and…

1. Suppose the price elasticity of demand for bread is 1.00. If the price of bre

1. Suppose the price elasticity of demand for bread is 1.00. If the price of bread falls by 20%, the quantity demanded will increase by: 2. Suppose that a 20% decrease in the pric…

1. Suppose the price level rises in the European Union. Other things being equal

1. Suppose the price level rises in the European Union. Other things being equal, the real exchange rate between the European Union (home country) and the United States will a. br…

1. Suppose the price of Coke increases. What would happen to the equilibrium pri

1. Suppose the price of Coke increases. What would happen to the equilibrium price and quantity of Pepsi? a. Both the equilibrium price and quantity of Pepsi would increase. b. Bo…

1. Suppose the price of a good rises from $10 to $20 and quantitiy demanded fall

1. Suppose the price of a good rises from $10 to $20 and quantitiy demanded falls from 500 to 400. If you calculate the elasticity of demand without using the midpoint method, the…

1. Suppose the price of a good rises from $10 to $20 and quantity demanded falls

1. Suppose the price of a good rises from $10 to $20 and quantity demanded falls from 500 to 400. If you calculate the elasticity of demand WITHOUT using the midpoint method, the …

1. Suppose the price of cherries decreases at the same time Mrs. Smith’s introdu

1.Suppose the price of cherries decreases at the same time Mrs. Smith’s introduces a new and better-tasting cherry pie that consumers love. How will these changes impact the quant…

1. Suppose the required reserve ratio is 20%. grandma takes $100 cash she has bu

1. Suppose the required reserve ratio is 20%. grandma takes $100 cash she has buried under the tree in the backyard and put it in a checking account at her bank. the banks loan ou…

1. Suppose the sum of consumption, planned investment, and government spending i

1. Suppose the sum of consumption, planned investment, and government spending is $800 billion, where the figures for government spending included in that $800 billion includes: a…

1. Suppose the sum of consumption, planned investment, and government spending i

1. Suppose the sum of consumption, planned investment, and government spending is $800 billion, where the figures for government spending included in that $800 billion includes: a…

1. Suppose the utility that Professor Price derives from consuming commodities A

1. Suppose the utility that Professor Price derives from consuming commodities A and B are as follows: College is as follows: Quantity of A Total Utility of A 0 300 550 700 850 90…

1. Suppose the yield curve is upward sloping. How should one interpret this part

1. Suppose the yield curve is upward sloping. How should one interpret this particular yield curve? 2. Suppose there is a reduction in government spending. Such a fiscal policy ac…

1. Suppose there are 100 firms in a perfectly competitive industry. Short run ma

1. Suppose there are 100 firms in a perfectly competitive industry. Short run marginal costs for each firm are given by SMC-q2 and market demand is given by Qd- 1000 - 20P a. Calc…

1. Suppose there are 100 firms in a perfectly competitive industry. Short run ma

1. Suppose there are 100 firms in a perfectly competitive industry. Short run marginal costs for each firm are given by SMC = q + 2 and market demand is given by Qd= 1000 - 20P A.…

1. Suppose there are only two firms in the market, firm A and firm B. They produ

1. Suppose there are only two firms in the market, firm A and firm B. They produce identical products. Firm A and firm B have the same constant marginal cost, MCA MCB 10.The marke…

1. Suppose there are two countries Country A and Country B. Country A can produc

1. Suppose there are two countries Country A and Country B. Country A can produce 4,000 cell phones or 10,000 garments a day, or any combination thereof. Country B can produce 6,0…

1. Suppose there are two countries that are identical with the following excepti

1. Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this informati…

1. Suppose there are two firms, Firm 1 and Firm 2, who are currently acting in a

1. Suppose there are two firms, Firm 1 and Firm 2, who are currently acting in a competitive manner. Suppose further they have the option of colluding, where both firms agree to r…

1. Suppose there are two types of consumers of Trojan condoms. Type 1 has a dema

1. Suppose there are two types of consumers of Trojan condoms. Type 1 has a demand of P=100-Q1 and type 2 has P=3-Q2. As a monopolist Trojan has a TC=0. Trojan can offer a small p…

1. Suppose there is a dice game--you toss a dice, get $1000 if the number is 5 o

1. Suppose there is a dice game--you toss a dice, get $1000 if the number is 5 or 6, but lose $500 if the number is 1, 2, 3 or 4. (1) Is this a fair game? Would a risk-averse pers…

1. Suppose there is an increase in the supply of a product. Rank the following o

1. Suppose there is an increase in the supply of a product. Rank the following own price elasticity of demand classifications according to which has BOTH the largest effect on pri…

1. Suppose two soda brands, Mountain Dew and Mello Yello, are trying to decide w

1. Suppose two soda brands, Mountain Dew and Mello Yello, are trying to decide whether to launch advertising campaigns for their respective products. These decisions will be taken…

1. Suppose we have a duopoly in the production of mineral spring water. Each fir

1. Suppose we have a duopoly in the production of mineral spring water. Each firm has the same cost structure where MC(Q) = 10. The market demand for mineral spring water is given…

1. Suppose we have a random sample of 50 people and their weight, W and height,

1. Suppose we have a random sample of 50 people and their weight, W and height, H are recorded to the nearest pound and inch respectively. A regression of W on H and an intercept …

1. Suppose we have a random sample of 50 people and their weight, W and height,

1. Suppose we have a random sample of 50 people and their weight, W and height, H are recorded to the nearest pound and inch respectively. A regression of W on H and an intercept …

1. Suppose we have a random sample of 50 people and their weight, W and height,

1. Suppose we have a random sample of 50 people and their weight, W and height, H are recorded to the nearest pound and inch respectively. A regression of W on H and an intercept …

1. Suppose we started out at the steady state capital stock in the basic Solow g

1. Suppose we started out at the steady state capital stock in the basic Solow growth model. If there subsequently were an increase in the demand for loanable funds due to more fa…