Economics

Suppose the federal budget is balanced but that automatic stabilizers increase t

Suppose the federal budget is balanced but that automatic stabilizers increase tax revenues by $60 billion per year and decrease transfer payments (e.g., welfare, unemployment ben…

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

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 spending…

Suppose the federal government requires beer drinks to pay a $2 tax on each case

Suppose the federal government requires beer drinks to pay a $2 tax on each case of beer purchased. (In fact, both the federal and state governments impose beer taxes of some sort…

Suppose the fictional country of Wallstona is under pressure from its trading pa

Suppose the fictional country of Wallstona is under pressure from its trading partners to decrease its trade surplus. Which of the following would help decrease Wallstona's trade …

Suppose the figure above represents the Marginal Net Benefits for the mineral tu

Suppose the figure above represents the Marginal Net Benefits for the mineral tungston for two periods.    There are currently 20 tons available in the ground. Assume the discount…

Suppose the figure to the right illustrates the average level of happiness with

Suppose the figure to the right illustrates the average level of happiness with life across income classes for a particular country. Assume that satisfaction resulting from income…

Suppose the firm faces the following (Cobb Douglas) production function: Qx = 10

Suppose the firm faces the following (Cobb Douglas) production function: Qx = 10 L^.4 K^.6 Suppose further the PL = $15 and PK = $30 TC = P (lowercase l) L (PlL) + Pk K And Total …

Suppose the firm is a price taker and sells its product at a price of $12 to all

Suppose the firm is a price taker and sells its product at a price of $12 to all customers. At a level of output equal to 30 units, MR = MC, total costs equal $1000, and total var…

Suppose the firm sells its product at a price of $10 to all customers. MR=MC at

Suppose the firm sells its product at a price of $10 to all customers. MR=MC at a level of output equal to 20 units. Also, total costs equal $300 and total variable costs equal $2…

Suppose the firms in a monopolistically competitive market are incurring economi

Suppose the firms in a monopolistically competitive market are incurring economic losses. What will happen to move the market to its long-run equilibrium? More close substitutes w…

Suppose the flour division at General Mills is deciding whether to risk a price

Suppose the flour division at General Mills is deciding whether to risk a price war with Pillsbury by lower its prices. If General Mills lets prices remain the same, then General …

Suppose the following Social Security reform became law: -All current Social Sec

Suppose the following Social Security reform became law: -All current Social Security recipients will continue to receive their benefits, but no increase will be made other than c…

Suppose the following bank balance sheet represents all banks in a small island

Suppose the following bank balance sheet represents all banks in a small island economy Assets: Reserves $5 Million, Loans $80 Million Liabilities + Owner"s Equity: Deposits $60 M…

Suppose the following bond quote for IOU Corporation appears in the financial pa

Suppose the following bond quote for IOU Corporation appears in the financial page of today’s newspaper. Assume the bond has a face value of $1,000, and the current date is April …

Suppose the following data describe a nation\'s population: Year 1 Year 2 320 mi

Suppose the following data describe a nation's population: Year 1 Year 2 320 million 150 million 160 million 8.7 million9.0 million Population 310 million Labor force Unemployed a…

Suppose the following data describe the demand for liquid-diet beverages: Five i

Suppose the following data describe the demand for liquid-diet beverages: Five identical, perfectly competitive firms are producing these beverages. The cost of producing these be…

Suppose the following data describe the demand for liquid-diet beverages: Five i

Suppose the following data describe the demand for liquid-diet beverages: Five identical, perfectly competitive firms are producing these beverages. The cost of producing these be…

Suppose the following data describes a nation\'s population (a) How many people

Suppose the following data describes a nation's population (a) How many people are unemployed in each year? Instructions: Enter your responses rounded to one decimal place. Year 1…

Suppose the following graph depicts the U.S. domestic market for towels. Assume

Suppose the following graph depicts the U.S. domestic market for towels. Assume that the United States only trades towels with China, and that China, with Its comparative advantag…

Suppose the following graph shows the supply of and demand for admission to New

Suppose the following graph shows the supply of and demand for admission to New York University, where supply represents the number of student openings and demand represents the n…

Suppose the following table describes the marginal costs and marginal benefits o

Suppose the following table describes the marginal costs and marginal benefits of waste (garbage) reduction. What is the optimal amount of garbage? What is the situation if no gar…

Suppose the following wage regression is run where the results are presented in

Suppose the following wage regression is run where the results are presented in a table below: Wage = b0 + b1*Male + b2*Age + b3*Grade + b4*Married + b5*Experience where the varia…

Suppose the full employment of real output (Q) for a hypothetical economy is $25

Suppose the full employment of real output (Q) for a hypothetical economy is $250 and the price level (P) initially is 100. Use the short - run aggregate supply schedules below to…

Suppose the general demand function for cars is Q_d = f(P, M, P_gas, P_e, N) suc

Suppose the general demand function for cars is Q_d = f(P, M, P_gas, P_e, N) such that M= average income of $30, 000; P_gas = $2.75 per gallon of gas; P_e = $20, 000 expected futu…

Suppose the government announces a prize for a solution to its need. Both firm 1

Suppose the government announces a prize for a solution to its need. Both firm 1 and firm 2 have an idea for a technology to satisfy the government’s need. Firm 1’s idea is (1, 1)…

Suppose the government announces a prize for a solution to its need. Both firm 1

Suppose the government announces a prize for a solution to its need. Both firm 1 and firm 2 have an idea for a technology to satisfy the government’s need. Firm 1’s idea is (1, 1)…

Suppose the government decides to raise the gasoline tax as a way of reducing ai

Suppose the government decides to raise the gasoline tax as a way of reducing air pollution and traffic congestion to their optimal levels. Which of the following describes why co…

Suppose the government decides to raise the gasoline tax as a way to reduce air

Suppose the government decides to raise the gasoline tax as a way to reduce air pollution and traffic congestion to their optimal levels. Which of the following describes why corr…

Suppose the government decides to replace air force one, an ageing boeing 787 wi

Suppose the government decides to replace air force one, an ageing boeing 787 with a new boeing 787 dreamliner. The price of the new plane (without the special improvements for th…

Suppose the government does not know the level of the marginal damages, but that

Suppose the government does not know the level of the marginal damages, but that the neighbors themselves can effectively petition the government to impose a Pigouvian tax of any …

Suppose the government eliminates all environmental regulations and, as a result

Suppose the government eliminates all environmental regulations and, as a result, the production of goods and services increases, but there is much more pollution. In this scenari…

Suppose the government has determined that the socially optimal quantity of sulf

Suppose the government has determined that the socially optimal quantity of sulfur dioxide emissions is 125 million tons per day. One way governments can charge firms for pollutio…

Suppose the government imposes a price ceiling of $5 on this market. What will b

Suppose the government imposes a price ceiling of $5 on this market. What will be the size of the shortage in this market? a. 2 units b. 8 units c. 10 units d. 0 units What is the…

Suppose the government imposes a small carbon tax on automakers. But the price o

Suppose the government imposes a small carbon tax on automakers. But the price of gasoline has doubled due to a Middle East crisis which has reduced oil production. In the market …

Suppose the government increases aggregate demand to a level that increases GDP

Suppose the government increases aggregate demand to a level that increases GDP above its long-run equilibrium level. What sequence of events would follow? A)price rise; GDP incre…

Suppose the government increases aggregate demand to a level that increases GDP

Suppose the government increases aggregate demand to a level that increases GDP above its long-run equilibrium level. What sequence of events would follow? A)Prices rise; nominal …

Suppose the government increases lump sum taxes. This causes a. disposable incom

Suppose the government increases lump sum taxes. This causes a. disposable income decrease, which causes aggregate supply to decrease. b. government spending to decrease, which ca…

Suppose the government increases lump-sum taxes. This causes, A) disposable inco

Suppose the government increases lump-sum taxes. This causes, A) disposable income to decrese which causes consumption spending to decrease and aggregate demand to decrease, B) go…

Suppose the government institutes a new sales tax on shoes, which are produced b

Suppose the government institutes a new sales tax on shoes, which are produced by a competitive constant-cost industry. a. Does the price of shoes change by more in the short run …

Suppose the government introduces a subsidy on firms’ sales (e.g. for every $1 o

Suppose the government introduces a subsidy on firms’ sales (e.g. for every $1 of output sold, firms receive an additional 5 cents from the government). Keeping everything else co…

Suppose the government is currently imposing a $40-Per-bettle tax on run, True o

Suppose the government is currently imposing a $40-Per-bettle tax on run, True or False: The government can raise the tax revenue by decreasing the per-unit tax on rum, True False…

Suppose the government levies a $1 per unit tax on a product. Which of the follo

Suppose the government levies a $1 per unit tax on a product. Which of the following statements is correct? I.      If the tax is imposed on the buyers of the product, the price t…

Suppose the government levies an excise tax on buyers of large-carat diamond rin

Suppose the government levies an excise tax on buyers of large-carat diamond rings. Before the tax, 8,000 rings were sold per year at an average price of $50,000. With the tax in …

Suppose the government levies only proportional taxes. In particular assume that

Suppose the government levies only proportional taxes. In particular assume that people pay to the government 25% of their earned income. The MPC is assumed to be 0.8. (a) Compute…

Suppose the government of South Island has fixed the value of its currency, the

Suppose the government of South Island has fixed the value of its currency, the Islandia, at $0.50 per Islandia, but the market equilibrium value of the Islandia is $0.75 per New …

Suppose the government of Washington is considering the addition of a new tax on

Suppose the government of Washington is considering the addition of a new tax on firms. You have been called in to provide expert analysis on how such a tax would effect employmen…

Suppose the government of Washington is considering the addition of a new tax on

Suppose the government of Washington is considering the addition of a new tax on rms. You have been called in to provide expert analysis on how such a tax would eect employment of…

Suppose the government of Washington is considering the addition of a new tax on

Suppose the government of Washington is considering the addition of a new tax on rms. You have been called in to provide expert analysis on how such a tax would e ect employment o…

Suppose the government of the fictional country of Sutan has just decreased gove

Suppose the government of the fictional country of Sutan has just decreased government expenditures. If Sutan were a closed economy, the decrease in government expenditures would …

Suppose the government provides peanut butter to everyone free of charge and eve

Suppose the government provides peanut butter to everyone free of charge and everyone consumes it to the point at which he receives no additional satisfaction from another spoonfu…