Questions
What is a rebound effect? Give examples of micro- and macroeconomic rebound effects. Does the existence...

What is a rebound effect? Give examples of micro- and macroeconomic rebound effects. Does the existence of rebound effects strengthen or weaken the case for a government program to weatherize the homes of low-income homeowners to reduce carbon emissions?

In: Economics

please explain as many as possible and as clearly as possible : 1. Why 5G will...

please explain as many as possible and as clearly as possible :
1. Why 5G will be a rollout rather than a launch? 2. What are the concerns about 5G in terms of privacy?

In: Economics

What is Averch–Johnson (AJ) Effect? Show the additional social welfare loss caused by AJ Effect in...

What is Averch–Johnson (AJ) Effect? Show the additional social welfare loss caused by AJ Effect in the case of a regulated natural monopoly with average cost pricing with a graph and explain.

In: Economics

In 2009, President Obama with Congressional approval increased government spending and decreased lump-sum taxes in response...

  1. In 2009, President Obama with Congressional approval increased government spending and decreased lump-sum taxes in response to the financial crisis.  
    1. Graph and explain what happens in both the ISLM model and the ADAS model (with the upward sloping SRAS curve) in the short run. Be sure to discuss real output, real interest rate and the price level in your answer.
    2. Graph and explain what happens in the long run if the Fed does not change monetary policy. Be sure to discuss real output, real interest rate and the price level in your answer. You may use your graph from part a.
    3. Fill in the table based on your answers to a. and b.

Indicate if the variable increases, decreases or does not change.  Compare to the initial equilibrium.

Short run

Long run

Real output

Real interest rate

Price level

Consumption

Investment

In: Economics

Is a ban on incandescent bulbs socially efficient? What about leaving the decision to the market?...

Is a ban on incandescent bulbs socially efficient? What about leaving the decision to the market? Explain your answer with a graph.

In: Economics

Answer the following questions for each of the three situations outlined below: What is the good...

  1. Answer the following questions for each of the three situations outlined below:
    1. What is the good or service being consumed? Does its consumption create externalities? If so, what they are and are they positive or negative?
    2. If the example involves externalities, identify who creates the externality and who benefits or suffers from it.

#1--Antibiotics are becoming less effective as bacteria evolve, a process accelerated by overuse of antibiotics by doctors. Nevertheless, a “survey of physicians showed they were most likely to choose the broadest spectrum [antibiotic] to treat pneumonia, despite guidelines to the contrary; contributing to resistance rated lowest among seven determinants of their choices. (The Milken Institute Review, Third Quarter 2012)”

#2--An AP article (Yabba Dabba Don’t, AP, April 7, 2019) reported on a house built by a rich retiree in Hillsborough, a posh suburb of San Francisco. The house is “…an elaborate homage to “The Flintstones” family…The bold, bulbous house is surrounded by Stone Age sculptures inspired by the 1960s cartoon, along with aliens and other oddities...” The town says the property is “an eyesore.” The resulting controversy “has sparked…an online petition signed by thousands to preserve the attention-grabbing property, visible from a nearby highway….”

#3--Avocados have become increasingly popular in China, Japan, and Canada, and some avocadoes that used to be exported to the United States are now sent to these other countries.   Prices for avocadoes in the US have increased dramatically as a result, causing some restaurants to add a surcharge on orders of guacamole.

In: Economics

Comment on income levels and the substitution effect? Does the amount of disposable income really matter?...

Comment on income levels and the substitution effect? Does the amount of disposable income really matter? (In other words, once your necessities (food, water, shelter, clothes, insurance, cell phone, etc. are paid, do you "need" to buy anything else (concert tickets, a new purse, a collectible, etc?  

In: Economics

In your opinion, which do you think is a better expansionary fiscal approach: cutting taxes or...

In your opinion, which do you think is a better expansionary fiscal approach: cutting taxes or increasing spending? Give the pros and cons of your stance.

In: Economics

This question concerns our short run model of exchange rate determination. Why do we need a...

  1. This question concerns our short run model of exchange rate determination.

  1. Why do we need a different model of exchange rates in the short run and the long run? Your answer should include some reference to empirical evidence.

  1. Assume we are in the short run, and assume that the Federal Reserve keeps the supply of dollars fixed. The U.S. has an excellent corn harvest this year, so real output Y goes up. Explain what you expect to happen to the dollar-euro exchange rate E$/€ and why.

In: Economics

Suppose we have n firms in a perfectly competitive industry. The shapes of the marginal and...

Suppose we have n firms in a perfectly competitive industry. The shapes of the marginal and average cost curves are as usual, i.e., they are U-shaped. The industry demand curve is downward sloping. Please answer the following questions associated with this simple model. a. Write down the basic assumptions of a perfectly competitive industry. We have frequently stated that these assumptions were very crucial in obtaining certain results from this model. Explain each assumption in that sense in a few sentences. b. Describe the industry equilibrium and corresponding long-run equilibrium of any firm in this market. For this analysis, you are supposed to draw two graphs. c. If there is an increase in the demand for the product in this industry, how is the market going to be affected? What will be the effect of this change on a representative firm in the short-run? Explain possible profit opportunities in the market. As you did in part (b), draw two graphs showing all these changes. For simplicity purposes, please use the same long-run AC curve for your analysis. d. How will the industry adjust to the change in the demand in the long-run? More briefly: (i) What will happen to the number of firms in the industry? (ii) What are the properties of the new long-run equilibrium in terms of profits? (iii) Which particular assumption(s) did you use in reaching these conclusions? Assume a change in total industry supply will not change the input prices.

In: Economics

You’ve probably read/heard some proposals on how to deal with the looming Social Security insolvency issue....

You’ve probably read/heard some proposals on how to deal with the looming Social Security insolvency issue. (If not, please Google it, and select a couple of articles to learn from.) What do you think is the best approach that you’ve read/heard about? What are its pros and cons?

In: Economics

Training of ethics in many companies may not be considered as sufficient strategy. Do you agree?please...

Training of ethics in many companies may not be considered as sufficient strategy. Do you agree?please explain.

In: Economics

Allison has Parkinson's disease. the disease significantly hinders her physical movements. She is applying for a...

Allison has Parkinson's disease. the disease significantly hinders her physical movements. She is applying for a marketing manager position at HexCorp. She is highly qualified, but Hex chooses not to hire her for fear that her disease will hinder her ability to adequately perform the job duties.
If Allison seeks to sue HexCorp, what facts about Allison's medical diagnosis, the position, and HexCorp will the court examine to determine if there has been discrimination prohibited by the ADA?

In: Economics

Which of the following depreciation methods does not use salvage value? A. Straight-line B. Unit output...

Which of the following depreciation methods does not use salvage value?

A.

Straight-line

B.

Unit output

C.

Double declining balance

D.

Some-of-the-year-digits

Which of the following statements is correct?

A.

To have low IRR, low WACC

B.

To have high IRR, low WACC

C.

To have low IRR, high WACC

D.

To have high IRR, high WACC

Which of the following depreciation methods is good for “Income Reporting”?

A.

Unit output

B.

Some-of-the-year-digits

C.

Double declining balance

D.

Straight-line

Which of the following depreciation methods is good for “Tax Purposes”? In other words, the usage of this method will reduce your tax obligation.

A.

Straight-line

B.

Double declining balance

C.

Unit output

D.

Some-of-the-year-digits

As the interest rate increases, the present value of an amount to be received at the end of a fixed period ____

A.

Decreases

B.

Increases

C.

Remains the same

D.

Not enough information to tell

which of the following is an example of Sunk cost:

A.

Ford Pinto

B.

Chevy Nova

C.

Ford Crown Victoria

D.

Ford Edsel

If we are covering materials and labor costs of an item in a Managerial Accounting course, we are referring to which of the following concepts:

A.

Overhead cost

B.

Manufacturing cost

C.

Prime cost

D.

Conversion cost

If an airline places an order to buy 40 new planes and negotiates an attractive price for this fleet, because it buys so many planes, this is an example of:

A.

Fixed cost

B.

Mixed cost

C.

Economies of Scale

D.

Variable cost

In: Economics

Suppose we have n firms in a perfectly competitive industry. The shapes of the marginal and...

Suppose we have n firms in a perfectly competitive industry. The shapes of the marginal and average cost curves are as usual, i.e., they are U-shaped. The industry demand curve is downward sloping. Please answer the following questions associated with this simple model.

a. Write down the basic assumptions of a perfectly competitive industry. We have frequently stated that these assumptions were very crucial in obtaining certain results from this model. Explain each assumption in that sense in a few sentences.

b. Describe the industry equilibrium and corresponding long-run equilibrium of any firm in this market. For this analysis, you are supposed to draw two graphs.

c. If there is an increase in the demand for the product in this industry, how is the market going to be affected? What will be the effect of this change on a representative firm in the short-run? Explain possible profit opportunities in the market. As you did in part (b), draw two graphs showing all these changes. For simplicity purposes, please use the same long-run AC curve for your analysis.

d. How will the industry adjust to the change in the demand in the long-run? More briefly: (i) What will happen to the number of firms in the industry? (ii) What are the properties of the new long-run equilibrium in terms of profits? (iii) Which particular assumption(s) did you use in reaching these conclusions? Assume a change in total industry supply will not change the input prices.

In: Economics