Which of the following equations illustrates the equilibrium level of income with respect to the simple Keynesian closed-economy model?
a. Y = [1/(1 ? b)](a ? bT ? I + G)
b. Y = [1/(1 ? b)](a + bT + I + G)
c. Y = [1/(1 + b)](a ? bT ? I ? G)
d. Y = [1/(1 ? b)](a ? bT + I + G)
e. Y = (1 ? b)(a + bT + I + G)
D
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Assume that a perfectly competitive firm hires workers from a perfectly competitive market for labor. The marginal product of a worker is 10 units per day
If the good that the worker produces is sold for $5, what is the maximum daily wage that should be offered to the worker?
The Happy Mountain Brewing Company sells ground organic coffee in one pound containers through several grocery chains in the US
The firm has two divisions: the roasting division buys raw organic coffee beans and then blends, roasts, and grinds the beans, and the merchandising division packages and distributes the ground coffee. a. Please draw a carefully labeled figure that illustrates the optimal transfer pricing policy for the firm if there is no outside market and the firm is a monopoly seller (i.e., there are no other sellers of ground organic coffee). In particular, please show the optimal transfer price that is paid to the roasting division, the optimal retail price charged by the merchandising division, and the optimal amount of coffee sold. b. Suppose poor weather conditions in South American increase the price of raw coffee beans. How does this affect the marginal cost curve for the roasting division? Does this also affect the marginal cost of merchandising (packaging and distribution)? How do the optimal transfer price, retail coffee price, and quantity sold change due to this weather problem?
Before the nation's first transcontinental railroad was completed, travelers to the Pacific Coast used which forms of transportation?
a. ship, wagon b. dugout canoe, dirigible c. horse d. All of the above are correct.
A price-discriminating monopoly charges the lowest price to the group that:
a. has the most elastic demand. b. purchases the largest quantity. c. engages in the most arbitrage. d. is least responsive to price changes.