Questions
The property appraisal district for Marin County has just installed new software to track residential market...

The property appraisal district for Marin County has just installed new software to track residential market values for property tax computations. The manager wants to know the total equivalent cost of all future costs incurred when the three county judges agreed to purchase the software system. If the new system will be used for the indefinite future, find the equivalent value (a) now and (b) for each year hereafter. The system has an installed cost of $2,500,000 and an additional cost of $700,000 at year 8. The annual software maintenance contract cost is $75,000 for the first 4 years, $100,000 for the second 4 years, $125,000 for the third 4 years, and $125,000 thereafter. In addition, there is expected to be a recurring major upgrade cost of $100,000 every 14 years. Assume that i= 7% per year for county funds

In: Economics

1) Why is it possible to change real economic factors in the short run simply by...

1) Why is it possible to change real economic factors in the short run simply by printing and distributing more money?

2) Explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 1-7% regularly.

3) Explain the difference between active and passive monetary policy.

In: Economics

4. The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions excludes: a....

4. The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions excludes:

a. Bribes made to secure contracts that would otherwise not be secured

b. Grease payments to gain exclusive preferential treatment

c. Facilitating payments to expedite routine government action

d. Payments to government officials for special privileges

5. Certification as a schedule B corporation would likely not involve:

a. A focus on environmental sustainability in the organization

b. Assuring that the needs of external stakeholders are considered when making decisions.

c. Making sure that the company is only focused on shareholder wealth maximization

d. Giving employees a voice in the management of the organization

e. An assurance that the firm has a commitment to corporate social responsibility.

6. If a country having balance of payments problems gets a loan from the IMF, they are likely required to:

a. Give tax cuts to local corporations and wealthy elites

b. Use funds to send money to individual citizens

c. Adopt specific economic policies to achieve stabilization

d. Allow developed nations firms to engage in FDI in their country

e. Raise tariffs against inputs

In: Economics

Suppose Congress decides to increase government spending and taxes by equal amounts. Use the IS-LM AD-SRAS-LRAS...

Suppose Congress decides to increase government spending and taxes by equal amounts. Use the IS-LM AD-SRAS-LRAS model to illustrate graphically the short run impact of the increase in government spending and taxes on output and interest rates, prices, consumption, unemployment rate and investment in short run. Explain clearly which curve would shift and why. What will be the long run impact of this increase in government spending and taxes on output and interest rates, prices, consumption, unemployment rate and investment.
Show the appropriate movement of curves both for the short run and the long run. Be sure to label: i. the axes; ii. the curves; iii. The initial equilibrium values; iv. The direction the curves shift; and v. the short run equilibrium values and vi. The long run equilibrium values.

How can the Fed keep the economy from falling into a recession/boom due to the increase in government spending and taxes? Use a second IS-LM-SRAS-LRAS model to illustrate graphically the impact of both fiscal policy of increase in government spending and taxes and the monetary policy which prevents output from falling/rising. Be sure to label: i. the axes; ii. the curves; iii. The initial equilibrium values; iv. The direction the curves shift; and v. the terminal equilibrium values.

In: Economics

a) Identify the most important source(s) of market power in the following markets and briefly explain...

a) Identify the most important source(s) of market power in the following markets and briefly explain your answers:

i. Small town bars with liquor licenses

ii. Apple iPad

iii. Electronic commerce (Amazon)

iv. Brand-name prescription drugs

v. Netflix

b) Calculate the Lerner Index for the following profit maximizing firms:

i. Netflix: price = 10, marginal cost = 4

ii. Shell gasoline: elasticity = 0.6

c) Provide an example cross price elasticity for the following products and briefly justify your answer:

i. The price of Apple iPhone X and the quantity of Samsung Galaxy S10

ii. The price of BP gasoline and the quantity of Ford Expedition SUV’s

iii. The price of Starbuck’s latte’s and the quantity of Nike shoes

In: Economics

You will find that we consume monopolies in our daily lives from our electricity to internet...


You will find that we consume monopolies in our daily lives from our electricity to internet service. Why do you think monopolies are classified as a price maker and what are the challenges that monopolies will be facing given the lack of competition?

In: Economics

Suppose that the pharmaceutical rm Merck is deciding whether to develop a new diagnostic procedure that...

Suppose that the pharmaceutical rm Merck is deciding whether to develop a new diagnostic procedure that can detect early-stage Alzheimer's disease more accurately than existing tests. Developing this technology would require an up-front fixed cost FC > 0. If Merck develops the technology, it can screen Q patients for Alzheimer's at the variable cost VC(Q) = 20Q. Merck estimates that market demand for the procedure would be p(Q) = 80 - (1/10)Q

a. Suppose that other companies can quickly copy Merck's procedure as soon as it is developed so that the market for medical tests will become perfectly competitive. If Merck develops the procedure, what are the equilibrium price pc and quantity Qc? If FC = 5000, will Merck develop the procedure? What about if FC = 10,000?

b. Now suppose that, if Merck develops the procedure, it will receive a patent that allows it to operate as a uniform-pricing monopolist. In this case, if Merck develops the procedure, how many patients will it screen (Qm), and what will it charge (pm)? If FC = 5000, will Merck develop the procedure? What about if FC = 10,000?

c. Now suppose that, if Merck develops the procedure, it is legally permitted (and able) to engage in perfect price discrimination. If Merck develops the procedure, what are its optimal quantity Qppd , revenue R(Qppd ), and variable costs VC(Qppd )? If FC = 5000, will Merck develop the procedure? What about if FC = 10,000?

d. Suppose that FC = 5000. Using your answers above, compute consumer surplus, producer surplus, and total surplus under each of the following policies:

i. No patent protecting Merck's innovation (as in part a).

ii. A patent letting Merck operate as a uniform-pricing monopolist (as in b).

iii. Legal permission for Merck to engage in perfect price discrimination (as in c).

(If Merck develops the procedure, make sure to subtract FC from the producer surplus.)

If we are trying to maximize total surplus, which of these policies is best? If we are instead trying to maximize consumer surplus, which policy is best?

In: Economics

What are the basic characteristics of civil liberties and civil rights? How are civil liberties and...

What are the basic characteristics of civil liberties and civil rights? How are civil liberties and civil rights different from each other? How does the constitutional basis for civil liberties different from the constitutional basis for civil rights?


In: Economics

Marking the benchmarks along your route (ie, Bretton Woods, Smithsonian, Jamaica, Plaza, and the Louvre Accords,...

Marking the benchmarks along your route (ie, Bretton Woods, Smithsonian, Jamaica, Plaza, and the Louvre Accords, etc), trace this evolution from its origins in the gold standard, through the fixed and the floating exchange rate systems to the managed float system we are living in today (15 pts).

In: Economics

Economists widely agree that Rent Control and Rent Ceilings are very unfavorable to use. This brings...

Economists widely agree that Rent Control and Rent Ceilings are very unfavorable to use.

This brings us to the question, what are 5 better policies that could improve access to housing for low-income households? Please give support for each of your listed policies.

In: Economics

Question 2: Simultaneous quantity choice: Two firms F1 and F2 producea homogeneous product and compete on...

Question 2: Simultaneous quantity choice: Two firms F1 and F2 producea homogeneous product and compete on the same market. The market price isdescribed by the inverse demand curve P= 11−2Q, where Q is total industry output and P is the market price. To keep things simple, suppose that each firm can produce either 1 or 2 units (these are the only possible choices of production).Further suppose that both firms have a constant marginal cost equal to 2, so that the total cost of firm i= 1, 2 producing quantity qi∈{1,2} is given by C(qi) = 2qi. Further suppose that firms’ production choices are simultaneous.

a. Since each firm can choose one of two possible output levels, there are four possible combinations of output choices: (q1,q2) = (1,1), (q1,q2) = (2,1),(q1,q2) = (1,2), and (q1,q2) = (2,2). Find the market price P under each ofthese possible output choices.

b. If the firms choose output levels (q1,q2), then firm 1 produces and sells (only) its own output q1 at the market price P determined by total output q1+q2. Firm 1’s realized profit is therefore given by π1=Pq1−2q1. Bearing in mind how(q1,q2) affect P, evaluate this profit function for each combination of output choices above.

c. Bearing in mind that the firms are symmetric (so that firm 2’s profits are themirror image of firm 1’s), represent the payoff matrix of this game.4. Find the Nash equilibria of this game.

In: Economics

1.Suppose that the federal government has a budget deficit and the economy is closed. Using the...

1.Suppose that the federal government has a budget deficit and the economy is closed. Using the savings–investment spending identity, explain how this affects investment spending.

2.The market for loanable funds is in equilibrium. All else equal, the federal government has eliminated taxes on interest earned from savings. Describe how this will affect the market for loanable funds, the equilibrium interest rate, and the equilibrium quantity of loanable funds.

In: Economics

Why is public participation important in a community development effort?  Research some local efforts at public...

Why is public participation important in a community development effort?  Research some local efforts at public participation and discuss at least one effort.  What was the issue, the response from the public, and was it effective?  

In: Economics

The following information is relevant for an individual firm operating in a perfectly competitive market. Output...

The following information is relevant for an individual firm operating in a perfectly competitive market.

Output 30
Variable Cost $800
Fixed Cost $1,200
Marginal Cost $60
Price $60

What will be the firm's production decision in the short-run?

  • Exit

  • Shutdown

  • Other firms will enter into the market

  • Operate

A fixed cost is a cost that:

  • exists only in the long-run.

  • does not vary with output.

  • changes based on the number of workers.

  • varies with output.

True or False:

A reason economies of scale exists is due to: Old tools and equipment can no longer be used.

  • FALSE

  • TRUE

Suppose you have the following information on a firm:

Marginal Revenue $240
Marginal Cost $250

Assume it is their goal to maximize profit.

Marginal Revenue $240
Marginal Cost $250
  • Decrease output to maximize profit.

  • Not enough iniformation to determine.

  • They are producing the profit maximizing level of output.

  • Increase output to maximize profit.

In: Economics

Fiscal Policy is the means by which government adjusts its spending and tax rates to monitor...

Fiscal Policy is the means by which government adjusts its spending and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy and that is defined as a policy through which a central bank influences a nation's money supply.

In my opinion I prefer a monetary policy because of its stability and fiscal relies too much on government debt. Fiscal policy decision making can also be influenced more on politics than the need of the economy.

Governments use each policy when the economy is too hot and inflation is rising:

fiscal: Governments can influence productivity levels by increasing or decreasing tax levels and public spending and usually curbs inflation. It also increases employment, can maintains a good value of money. Basically the government increases taxes to suck money out of the economy.

monetary: This is the process by which the authority on currency of a country such as a central bank controls either the cost of very short-term borrowing or money supply. They often target inflation of interest rate to create price stability and maintain trust in its currency.

Each policy used in a recession the government can increase government spending and cut taxes (or both). This can bring more jobs and the workers have more disposable income to put back into the economy.

Can I get a  reponce to this guy. Please try to wrte your agreement.

Your discussion post must be substantive. As a guideline your response to each question should be at least one paragraph. Your responses to fellow classmates must be substantive as well. Stating, “I agree” or “Good work” is cheerleading

In: Economics