When W = 20 , how many hours will the person work everyday?
Suppose that the wage rate is random. The person expects that tomorrow’s wage rate
could be W = 10 or W = 30 , with equal probability. The person will learn the wage
rate tomorrow morning, and then decide how many hours to work and how much food
to consume. What is his expected utility for tomorrow?
Continue from question 5. Suppose the person’s employer offers him a contract that
fixes his wage rate at W0 , no matter tomorrow’s market wage rate is 10 or 30. What is
the minimal value of W0 that the person would accept?
Suppose that the market for taxi service is regulated by the government.
What is the cost function of a taxi service company?
Suppose that the market for taxi service is regulated by the government.
Suppose that the market for taxi service is regulated by the government.
In the last question, what is the profit of each company that gets a license (written as
a function of X )?
Suppose that the market for taxi service is regulated by the government.
Suppose that W = 1, PG = 4 . If the government wants to maximize the total revenue
of taxi licenses, how many licenses should it issue?
A monopolist has two plants. The TC curve of plant A is
Suppose that FA = FB = 0 . What is the profit-maximizing total output Qs ?
A monopolist has two plants. The TC curve of plant A is
In the United States the demand for tomato is
Suppose the United States government permits free trade, so consumers in the U.S.
can buy foreign tomato at the world pricePf . What will be the output of the U.S.
monopolist?
In the United States the demand for tomato is
Suppose the United States sets an import quota of 10 tomatoes. What will be the price
of tomato in the U.S.?
How should we record the following transactions for the United States
on their Current Account (CA) and their Capital and Financial Account (KFA)?
United States imports US$75 sweater from Britain; Britain buys US$75 bonds from
United States.
How should we record the following transactions for the United States
on their Current Account (CA) and their Capital and Financial Account (KFA)?
United States imports US$75 sweater from Britain; Federal Reserve Board sells
British pounds to British bank and the total value equals US$75.
Suppose there are only two countries: the domestic and the foreign. The
real exchange rate between the two countries is e , which is the number of foreign goods
For given P and Pf , two of the four constants b, c, d, and g are positive. What
are they?
Suppose there are only two countries: the domestic and the foreign. The
real exchange rate between the two countries is e , which is the number of foreign goods
h and j are either 1 or −1 . What are the correct values?
Suppose there are only two countries: the domestic and the foreign. The
real exchange rate between the two countries is e , which is the number of foreign goods
Suppose there are only two countries: the domestic and the foreign. The
real exchange rate between the two countries is e , which is the number of foreign goods
China fixes the nominal exchange rate between yuan (人民幣) and US
dollar.
China has had hung trade surplus with the U.S. What has the Chinese government
done in the foreign exchange market to keep the nominal exchange rate fixed?
China fixes the nominal exchange rate between yuan (人民幣) and US
dollar.
According to the Solow growth model, how would each of the
following affect consumption per worker in the steady state?
The destruction of a portion of the nation’s capital stock in a war.
According to the Solow growth model, how would each of the
following affect consumption per worker in the steady state?
A permanent increase in the rate of immigration.
According to the Solow growth model, how would each of the
following affect consumption per worker in the steady state?
A temporary rise in the saving rate.
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