Economics

Suppose the Home country produces bicycles using capital (K) and labor (L) and n

Suppose the Home country produces bicycles using capital (K) and labor (L) and natural gas using land (T) and labor (L). Labor is mobile across sectors, while capital and land are…

Suppose the Kalamazoo Brewing Company (KBC) currently sells its microbrews in a

Suppose the Kalamazoo Brewing Company (KBC) currently sells its microbrews in a seven-state area: Illinois, Indiana, Michigan, Minnesota, Mississippi, Ohio, and Wisconsin. The com…

Suppose the MPC is08 and the current tax rate is 25%. Specify all answers to two

Suppose the MPC is08 and the current tax rate is 25%. Specify all answers to two decimal places. What is the government purchases multiplier? Number If the tax rate increases to 3…

Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-

Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-0.4q. Marginal extraction cost = $3 in period 1 and marginal extraction cost equals $3 in period 2.…

Suppose the North American Free Trade Agreement (NAFTA) resulted in a single lar

Suppose the North American Free Trade Agreement (NAFTA) resulted in a single large market for wheat, instead of three separate markets in Canada, the United States, and Mexico. Th…

Suppose the People\'s Bank of China wishes to peg the rate of exchange of its cu

Suppose the People's Bank of China wishes to peg the rate of exchange of its currency, the Yuan, in terms of the U.S. dollar. In each of the following situations, should it add to…

Suppose the Stimulus package (The American Recovery and Reinvestment ACT of 2009

Suppose the Stimulus package (The American Recovery and Reinvestment ACT of 2009) for $862 (originally it amount was approved for $787 billion and subsequently increased to $862 b…

Suppose the T-account (abbreviated balance sheet) for First National Bank is as

Suppose the T-account (abbreviated balance sheet) for First National Bank is as follows: At the outset assume that all banks other than First National Hank maintain zero excess re…

Suppose the U.S. dollar rises by 10% with respect to the Canadian dollar. Who wi

Suppose the U.S. dollar rises by 10% with respect to the Canadian dollar. Who will be helped by this? Question 6 options: U.S. tourists traveling to Canada U.S. companies that exp…

Suppose the U.S. economy finds itself in a recession after a recent financial cr

Suppose the U.S. economy finds itself in a recession after a recent financial crisis and series of unfortunate international events. If the Federal Reserve wants to stabilize the …

Suppose the U.S. economy finds itself in a recession after a recent financial cr

Suppose the U.S. economy finds itself in a recession after a recent financial crisis and series of unfortunate international events. If the government wants to stabilize the econo…

Suppose the U.S. experiences a recession while foreign countries that trade with

Suppose the U.S. experiences a recession while foreign countries that trade with the U.S. prosper. How will this affect the U.S.? U.S. imports and its aggregate demand will decrea…

Suppose the U.S. government wants to reduce sulfur dioxide emissions to correct

Suppose the U.S. government wants to reduce sulfur dioxide emissions to correct this market failure. The government has determined that the efficient quantity of sulfur dioxide em…

Suppose the U.S. government was able to determine which industries would grow th

Suppose the U.S. government was able to determine which industries would grow the most rapidly over the next 20 years. Explain why this doesn’t necessarily mean there should be a …

Suppose the U.S. president wants an estimate of the proportion of the population

Suppose the U.S. president wants an estimate of the proportion of the population who support his current policy toward revisions in the health care system. The president wants the…

Suppose the US and China are both under autarky, and each have a cell phone indu

Suppose the US and China are both under autarky, and each have a cell phone industry which engages domestically in all the aspects of cell phone production: R&D;, component pr…

Suppose the US economy is currently in long run equilibrium. Predict how each of

Suppose the US economy is currently in long run equilibrium. Predict how each of the following events will likely impact output, employment and the price level in the short run an…

Suppose the US government is considering placing a tariff or quota on imported c

Suppose the US government is considering placing a tariff or quota on imported cars. Which of the following statements is N regarding tariffs and quotas? O A Tariffs and quotas bo…

Suppose the US permanently imposes trade restrictions. 11.1. In the short run (c

Suppose the US permanently imposes trade restrictions. 11.1.   In the short run (compared to the original long run equilibrium), the US economy will experience a A.  CPI staying t…

Suppose the US welcomes a large number of unskilled migrants from India. 1. Use

Suppose the US welcomes a large number of unskilled migrants from India. 1. Use the Solow model to discuss the effects of these unskilled migrants on the US capital stock per work…

Suppose the United States and Japan produce only cell phones and digital music p

Suppose the United States and Japan produce only cell phones and digital music players, like Apple's iPod. Assume that each country uses only labor to produce each good, and that …

Suppose the United States and Japan produce only cell phones and digital music p

Suppose the United States and Japan produce only cell phones and digital music players, like Apple's iPod. Assume that each country uses only labor to produce each good, and that …

Suppose the United States and Mexico both produce hamburgers and tacos. The comb

Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below…

Suppose the United States and Mexico both produce hamburgers and tacos. The comb

Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below…

Suppose the United States and Mexico both produce hamburgers and tacos. The comb

Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below…

Suppose the United States and Mexico both produce hamburgers and tacos. The comb

Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below…

Suppose the United States does not produce any baseball hats domestically but im

Suppose the United States does not produce any baseball hats domestically but imports them from foreign producers. Initially, demand is Q 2000-5p and supply (from foreign producer…

Suppose the United States has a Gini coefficient of 0.4 and Sweden has a Gini co

Suppose the United States has a Gini coefficient of 0.4 and Sweden has a Gini coefficient of 0.25. Which of the following statements is true? The distribution of income is more eq…

Suppose the United States has two utilities. Commonwealth Utilities and Consolid

Suppose the United States has two utilities. Commonwealth Utilities and Consolidated Electric. Both produce 20 million tons of sulfur dioxide pollution per year. However, the marg…

Suppose the United States pursued an expansionary fiscal policy to stimulate its

Suppose the United States pursued an expansionary fiscal policy to stimulate its economy and eliminate a recession. The crowding-out effect suggests that: A) private investment wo…

Suppose the Unlted States and Switzerland produce computers and fine watches. Su

Suppose the Unlted States and Switzerland produce computers and fine watches. Suppose the production of computers and watches In the United States and Switzerland is as follows: T…

Suppose the above figure represents the market for dry cleaning services, which

Suppose the above figure represents the market for dry cleaning services, which use harmful chemicals that could pose risks to human health and the environment if not properly dis…

Suppose the actual unemployment rate for Sun country has been one of the lowest

Suppose the actual unemployment rate for Sun country has been one of the lowest at 2.5% over the last one year. The Central bank and the policy makers have decided to maintain the…

Suppose the airline industry consisted of only two firms: American and Texas Air

Suppose the airline industry consisted of only two firms: American and Texas Air Corp. Let the two firms have identical cost functions, C(q)=40q. Assume that the demand curve for …

Suppose the airline industry consists of two firms, A and B. These two firms eng

Suppose the airline industry consists of two firms, A and B. These two firms engage in Cournot competition with each other over a certain route for which inverse demand is P(Q) = …

Suppose the attendance for St. Louis Blues hockey games goes down after the St.

Suppose the attendance for St. Louis Blues hockey games goes down after the St. Louis Rams football team exits the St. Louis market. Which of the following would be the most likel…

Suppose the bank of canada reduces the money supply by 5%. a. what happens to th

Suppose the bank of canada reduces the money supply by 5%. a. what happens to the aggregate demand curve? b. What happens to the level of output and the price level in the short r…

Suppose the bank you own has no excess reserves and a current, large, and valuab

Suppose the bank you own has no excess reserves and a current, large, and valuable customer (one who has taken out many loans and always paid them back) approaches the bank asking…

Suppose the bank you own has no excess reserves and a current, large, and valuab

Suppose the bank you own has no excess reserves and a current, large, and valuable customer (one who has taken out many loans and always paid them back) approaches the bank asking…

Suppose the banking system has vault cash of $1,000, deposits at the Fed of $2,0

Suppose the banking system has vault cash of $1,000, deposits at the Fed of $2,000, and demand deposits of $10,000. a. If the reserve requirement is 20 percent, what is the maximu…

Suppose the book printing industry is competitve and beginswith a long run equil

Suppose the book printing industry is competitve and beginswith a long run equilibrium. Hi-Tech Printing Company invents a new process that sharplyreduces the cost of printing boo…

Suppose the book-printing industry is competitive and begins in a long-run equil

Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a new process that sharply reduces the cost of printi…

Suppose the book-printing industry is competitive and begins in a long-run equil

Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a new process that sharply reduces the cost of printi…

Suppose the candle manufacturing industry is organized as a perfectly competitiv

Suppose the candle manufacturing industry is organized as a perfectly competitive market i.e. it consists of many firms with identical cost structures. A single firm's long-run av…

Suppose the candle manufacturing industry is organized as a perfectly competitiv

Suppose the candle manufacturing industry is organized as a perfectly competitive market i.e. it consists of many firms with identical cost structures. A single firm's long-run av…

Suppose the central bank of a small open economy has foreign government bond hol

Suppose the central bank of a small open economy has foreign government bond holdings worth 1600 and domestic government bond holdings worth 2400. Assume the central bank maintain…

Suppose the chartered banks decide to greatly reduce the availability of student

Suppose the chartered banks decide to greatly reduce the availability of student loans that are guaranteed against default by the Canadian government. a. What would you expect to …

Suppose the city of metropolis is trying yo get dry cleaners to reduce their air

Suppose the city of metropolis is trying yo get dry cleaners to reduce their air pollution. One proposal would be to impose a tax on dry cleaners equal to T* on each unit of emiss…

Suppose the civilian non institutionalized working age population is 35.9 millio

Suppose the civilian non institutionalized working age population is 35.9 million in Laborland, 4.4 million are working part time, and 13.19 million are working full time. Laborla…

Suppose the civilian non-institutional population equals 100,000 persons; the ci

Suppose the civilian non-institutional population equals 100,000 persons; the civilian labor force equals 75,000 persons; there are 70,000 employed persons and 5,000 unemployed pe…