Homework Help for Economics

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1. The federal government calculates the budget on a fiscal year that begins each year on October 1 and ends the following September 30. At the beginning of the 2005 fiscal year, the Congressional Budget Office [CBO] forecast that the federal budget deficit would be $368 billion. The actual budget deficit for fiscal 2005 was only $319 billion. Federal expenditures were $37 billion less than the CBO had forecast, and federal revenue was $12 billion more than the CBO had forecast.

a. Is it likely that the economy grew faster or more slowly during fiscal 2005 than the CBO has expected? Explain your reasoning.

b. Suppose that Congress and the president were committed to balancing the budget each year. Does what happened during 2005 provide any insights into difficulties they might run into in trying to balance the budget every year?

Draw an appropriate diagram and use it to explain the sequence of logical steps needed to prove that it is possible for the income effect to be a negative type, and still have the usual prediction of a downward sloping demand curve (corresponding to a negative price effect)

/N. [2 marks (1/2 a mark each)]
 
Answers:

Situation: The following incident allegedly occurred in the aircraft industry. A mechanical engineer from Company A had conducted tests of a certain aircraft tail assembly configuration in his company

Which of the following will lower the marginal cost in the short-run?

A. An increase in the per unit costs of variable inputs such as the wage rate (per unit cost of labor)

B. An increase in the ratio of the fixed inputs to the variable inputs

C. An increase in the ratio of the variable inputs to the fixed inputs

D. none of the above

National income is equivalent to total earnings in the form of wages, rent, interest, and profits.
a. true
b. false

Although there is relatively little difference in the cost of producing hardcover and paperback books, these books sell for very different prices. Explain this pricing behavior.

Race and ethnicity are interconnected, but separate concepts that are often used interchangeably. In this assignment, write a short essay that compares and contrasts these concepts. How are they similar? How are they different? How are they related to one another?

All papers should be one-page length, double spaced, and include an introduction, body paragraphs, and conclusion.

Why As Disposable Income rises the APC falls and the APS rises.

I DO NOT WANT CALCULATION PART.

I need a clear and detailed briefing of this question by analyzing the problem by asking the below three questions.

Question: learning curves

Suppose you have a production technology that can be characterized by a learning curve. Every time you increase the production by one unit, your cost decreases by $6. The first unit costs you $64 to produce. If you receive a request for proposal (RFP) on a project for four units, what is your break-even price? Suppose that if you get the contract, you estimate that you can win another project for two more units. Now what is our break-even price for those two units?

Analyze the problem by using these three questions:

1. Who is making the bad decision? Why?

2. Does the decision maker have enough information to make a good decision? Why?

3. The incentive to do so? Why?

Answer to these questions will suggest solutions centered on:

1. Letting someone else make the decision, someone with better information or incentives

2. Giving the decision maker more information

3. Changing the decision maker’s incentives.

Institutions and growth. Write a brief essay (half page) about the role institutions for economic growth. Give a couple of examples of institutions, which tend to reduce growth. Give an example of an institution, which promotes growth.

Is the incidence of a corporate tax more likely to fall on the owners of physical capital or the owners of labor? How might your answer be different in the short vs. long run? Write a short essay (2 or 3 paragraphs) in which your clearly articulate your thinking.

Which of the following will lead to a decrease in total revenue?

A medical doctor who specializes in a particular field (e.g., surgery) generally earns more than a general practitioner because

Question 29

1. A problem associated with the principal-agent relationship is

   		imperfect information.
   		perfect information.
   		the low costs of monitoring behavior.
   		none of these choices.

3 points

Question 30

1. A problem with teams is that individuals

   		are too individualistic to work with others.
   		prefer piecework pay schemes.
   		tend to free ride.
   		none of these choices.

3 points

Question 31

1. Backloaded compensation encourages

   		employee turnover.
   		employee rollover.
   		principals to be agents.
   		employees to stay with the firm.

3 points

Question 32

1. Being paid a wage more than your opportunity costs is an example of

   		economic profit.
   		normal profit.
   		an accounting cost.
   		an efficiency wage.

3 points

Question 33

1. Free riding is a problem

   		if an individual's contribution to a team is not easily measured.
   		if an individual's contribution is to a team is easily measured.
   		when monitoring is costless.
   		when team members are altruistic.

3 points

Question 34

1. The board of directors and the CEO

   		do not have a principal/agent relationship.
   		are agent and principal, respectively.
   		are principal and agent, respectively.
   		are one in the same for small corporations.

3 points

Question 35

1. Ways to address free riding include

   		profit-sharing.
   		subjective evaluations.
   		improved monitoring.
   		all of these choices.

3 points

Question 36

1. A firm in which market has the most market power?

   		perfect competition
   		monopolistic competition
   		oligopoly
   		monopoly

3 points

Question 37

1. A graphical representation of the choices between two allocations of resources is called

   		the production possibilities frontier.
   		supply and demand.
   		the free choice model.
   		the moral hazard model.

3 points

Question 38

1. A unique resource can serve as

   		an economic profit
   		a sunk cost
   		an entry barrier
   		none of these choices

3 points

Question 39

1. Any point inside the production possibilities frontier is called

   		full employment.
   		unemployment.
   		efficient.
   		unobtainable.