If the Federal Reserve sells bonds on the open market, how would that impact purchases of U.S. financial assets by foreigners and net exports (based on the changing value of the dollar)? Financial Assets / Net Exports Decrease / Increase
please help me to understand this question Suppliers such as your local water suppliers, railroad, restaurants, coffee shops, hairdressers, artists, gas stations, movie theaters, airlines, universities, and so forth, operate under different market structures. All businesses exist for one purpose, which is to make profits. Profits or losses occur as a result of interaction between cost of production and market price. Higher production could lead […]
The following sets of statements contain common errors. Identify and explain each error:a. Demand increases, causing prices to rise. Higher prices cause demand to fall. Therefore, prices fall back to their original levels.b. The supply of meat in Russia increases, causing meat prices to fall. Lower prices always mean that Russian households spend more on meat.
(a) Relative to the no-regulation status quo, what is the efficiency gain that would result from this tax. Delineate and refer to relevant sections of the diagram. With reference to the diagram, explain why this tax fails to maximize the potential efficiency gains. 3. The diagram at the right shows, for a given chemical plant, the plant’s marginalbeneï¬Âts associated with toxic chemical emissions (MBE) and […]
11. Cyclical unemployment is: A. the additional unemployment not captured in official statistics resulting from discouraged workers and involuntary part-time workers B. the changes in unemployment that occurs due to expansions and contractions of the economy C. the unemployment that results when people retire or leave the labour force D. short-term unemployment that is associated with the process of matching workers with jobs E. the […]
In the Context of the shareholder wealth maximization model of a firm what is the expected impact of each of the following events on the value of the firm? Explain why.a. New foreign competitors enter the marketb. Strict pollution control requirements are implemented by the governmentc. A previously nonunion workforce votes to unionizedd. The rate of inflation increases substantiallye. A major technological breakthrough is achieved […]
1. (T, F, U) An increase in a smoker’s income may lower their health even if health is a normal good.2. (T, F, U) A consumer’s demand curve for a good generally will shift if the prices of other commodities change.3. (T, F, U) If there are two consumers in a market, the demand is at least as elastic with respect to price as is […]
Adam is concerned with setting a correct production level. He can produce 1000 units or 2000 units, and regardless of demand, will produce what he chooses, either 1000 or 2000 since he must produce this before realizing demand. Regardless of production, there is a 40% chance of high demand (2500 units) and a 25% chance of low demand (750 units) and a 35% chance of […]
A firm produces output using the technology: Q = 5K0.33L0.5 where capital, K, is measured in machine-hours, labor, L, is measured in person-hours, and Q denotes the yearly output. The hourly wage rate in the United States WL= $10, and the hourly rental rate of capital (IN EFFECT CAPITAL COSTS $2 PER MACHINE HOUR) is WK= 2 and the Price is $10. (a) Does this […]
1) Suppose the budget constraint is given by wL = pq, where L is labor hours, w is the wage, q is a consumption good and p is its price. Each household has a unit of time, normalized to 1, that they can spend on labor, L or leisure l. The MRS is given by q 1−L . a) Using the budget constraint and time […]
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