This updated edition of the widely touted Economic Apartheid in America looks at the causes and manifestations of wealth disparities in the United States, including tax policy in light of the 2001 a……続きを見る
"Suppose the World Bank provides a poor country with equipment on indefinite loan. (a) What is the effect on the real wage and hours worked in the short run? (b) What is the effect on the real……続きを見る
Cindy gains utility from consumption and leisure. The most leisure she can consume in a week is 168 hours. Her utility function is C*L, so that her marginal rate of substitution is C/L. Cindy recei……続きを見る
"a. You are provided with a payroll budget of $80,000, and your objective is to maximize the number of customers served. How would you allocate the budget in order to achieve your objective? b……続きを見る
Given the payoffs, determine Nash equilibrium, Optimal Strategy, Dominant Strategy and Rational behavior.(a) Consider the game in the following table, where s1a and s2a are strategies available to p……続きを見る
"1. (3%) What is the equation for the equilibrium value of Ap?
2. (2%) What is the MLR? k?
3. (2%) What is the equation for the IS curve?
4. (2%) What is the equation for the LM curve?
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In a state of nature 1 the individual has income w, whereas in the state of nature 2 the individual’s income is y >. The probabilities that these states will occur are (1-p) and p, respectively. ……続きを見る
"In his recent book “The End of Poverty”, economist Jeffrey Sachs of Columbia University advocates a big increase in gifts (not loans) from rich countries to developing countries. Suppose that rich ……続きを見る
(a) Jermaine has a health insurance policy that has a deductible of $1,000, a $10 copayment on doctor visits, and coinsurance of 10% on all expenses other than those for which there are copayments. ……続きを見る
Suppose a risk-averse consumer has an initial wealth of $5,000 and a utility function . He faces an 80 percent chance of losing $4000, and a 20 percent chance of losing $0. What is the most a……続きを見る
"1. Cable television service is an example of a natural monopoly…true or false, and why?
2. Provide an example of government applying the beneficiary principle. Do not use a toll road as an example."
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The rich countries are resorting to fiscal stimulus to increase aggregate demand to fight the current recession. Discuss the feasibility of lower middle or low income countries resorting to fiscal s……続きを見る
"Mike’s utility of consumption and leisure is U(C, L) =C*L, so that his marginal rate of substitution is C/L. There are 168 hours in the week and he earns $10 an hour.
a) What is his optimal combina……続きを見る
"1. How could the tax base for the Oklahoma state sales tax be narrowed? In answering this question, address only the sales tax…NOT income, property or other taxes.
2. Suppose the tag fee charged ea……続きを見る
"1. Why the price of computers dropped as their power and features has have increased? 2. Why would an increase in the tariffs (taxes) on imported orange juice raise the price of American prod……続きを見る
Studies that identify the effect of a voucher program on the student achievement of those who use vouchers typically do so by comparing the achievement of students who used the voucher to switch to ……続きを見る
"a) Calculate the monopoly equilibrium.
b) Calculate the consumer surplus.
c) Suppose this firm practices two-parts tariffs,
I) Calculate the optimal output.
II) Calculate the size of the optimal ""……続きを見る
"Suppose that in a city there are 100 identical self-service gasoline stations selling the same type of gasoline. The total daily market demand function for gasoline in the market is QD=60,000……続きを見る
"a. Construct a table showing the marginal failure reduction (in units) and the dollar value of these reductions for each inspector hired.
b. How many inspectors should the firm hire?
How many inspe……続きを見る
Let’s say you have a total wealth (W) of $100,000, which includes a car worth $20,000. The probability of losing your car (over one year) is 25%. Your utility function is U(W) = ln(W). (a) What is y……続きを見る
"Shelly’s preference for consumption and leisure are:
U(C, L) = (C-200)*(L-80)
This implies that Shelley’s marginal utility of leisure is C-200, and her margin al utility of consumption is L-80. The……続きを見る
Assume that, over time, engineers develop new residential furnaces that can run on different types of fuels, e.g., natural gas, electricity, propane, and fuel oil, simply by flipping a switch on the……続きを見る
"1. (2%) What is k? 2. (3%) What is the level of planned autonomous expenditures (AP)? 3. (2%) What is the equation for the IS curve? 4. (2%) What is the equation for the LM curve? 5. (1%) Wha……続きを見る
Assume that the Illinois Turnpike Authority lowered the speed limit on I-90 to 60 mph from the present 75 mph. In addition, assume that the new speed limit will be vigorously enforced by the Illinoi……続きを見る
