Name _____ ____________ last 4 PSU ID _____ Please check section that you are registered in: Section 002 - MWF 8:00 - 8:50 am: 102 Forum Building _______ Section 001 - MWF 1:25 - 2:15 pm: 101 Thomas Building ________ Fall 2014 Chuderewicz - YOU MUST HAND IN HW IN THE SECTION YOU ARE REGISTERED FOR - NO EXCEPTIONS YOU MUST USE THIS AS A TEMPLATE – THAT IS – MAKE SPACE FOR YOUR ANSWERS BY HITTING ENTER (you certainly don’t need to type this assignment)– LEAVE THE QUESTIONS AS THEY ARE – AND PLEASE STAPLE! NOTEBOOK PAPER (OR ANY PAPER) STAPLED TO THE BACK IS NOT ACCEPTABLE (GETS A ZERO). ALSO, PLEASE PUT THE FIRST TWO LETTERS OF YOUR LAST NAME IN THE TOP RIGHT HAND CORNER OF THIS PAGE SO THAT WE …show more content…
Recalculate Dagwood’s ‘new’ optimal consumption point and label on your graph as point C*B. Is Dagwood worse off or better off? Explain (hint, what has happened to his budget constraint (aka opportunity set)). C*B = [(1+0.05)(600+50)+200]/(2+0.05)=[(1.05)(650)+200]/(2.05)=(882.5)/(2.05)=430.5
Dagwood is worse off now. Since the current wealth falls from $200K to $50K, the budget constraint shifts inward. Thus, Dagwood will consume less than before.
THE FED TO THE RESCUE!
c) (5 points) In steps Ben Bernanke and the Fed and they conduct massive amounts of open market purchases and get the real rate of interest all the way down to - .05 (negative 5% = -.05). Recalculate the optimal bundle for Dagwood and add this point to your graph and label as point C*C. (Note, point C*C incorporates the shock to wealth in part b))
C*c = [(1-0.05)(600+50)+200]/(2-0.05)=[(0.95)(650)+200]/(1.95)=419.2 d) (5 points) Is Dagwood better or worse off due to the fall in the real rate of interest? Explain being sure to discuss exactly how the substitution and income effects play a role here. Be sure to define what the income and substitution effects are and how they play a role in Dagwood’s decision to alter his previously optimal bundle (we are comparing part b) to part c)). Also, comment on whether these income and substitution effects work in the same or opposite direction (i.e., is it a tug of war or do they work in the same
After further questioning you learn she is strictly following the fl uid and salt restriction ordered during
The Water Pollution Gizmo™ will teach you about some of the main kinds of water pollution. On the TYPE tab, under Types of pollution, check
1. Question: Why does Gatto think that school is boring and childish? How does Gatto’s depiction of school compare with your own elementary and secondary school experience?
Chapter nine: Explain how the average American is three times as rich as they would have been in 1950. Explain the most effective “knock” on GDP. What does the author think about the effectiveness of fiscal policy? Explain how a current account surplus/deficit can be good and bad.
Frigaliment Importing Co. V. B.N.S International Sales Textbook P. 117 Facts Frigaliment Importing and B.N.S Corporation came into agreement that B.N.S will provide chickens for sale to Frigaliment. The contract contained two separate shipments in which each shipment contained different weighted chicken. Frigaliment received the first shipment and noticed that the heavier chickens were older chicken that were meant for stewing not frying. Frigaliment immediately sto24pped the second shipment and sued that they did not provide the right type of chicken in which they were asking for young chickens. B.N.S (the defendant) states that chicken can mean anything as long as they are in the same
Chapter nine: Explain how the average American is three times as rich as they would have been in 1950. Explain the most effective “knock” on GDP. What does the author think about the effectiveness of fiscal policy? Explain how a current account surplus/deficit can be good and bad.
By approximately how much will Seignior Cruz’s utility change if, starting immediately, his wife insists that he spends one hour less on athletic activities every week? (We are making the bold assumption here that playing golf or curling is athletic!)
My interest for the Attorney Advisor position with the United States Patent & Trademark Office (USPTO) arises from my longstanding commitment to constantly improve myself. I have always enjoyed legal research, writing, and the complexities of intellectual property. I have no doubt that my enthusiasm to research, my eagerness to learn, and my strong ability to communicate clearly, work efficiently, accurately, and quickly, will make me an invaluable asset to the USPTO. I believe these traits combined with my unique skillset, developed as a result of experiences working for the Arizona Diamondbacks of Major League Baseball (Diamondbacks), Nike Inc. (Nike), and the Arizona Attorney General’s Office, Liability Management Department (AG Office)
The installation of a berry grader would positively impact the cooperative’s income, while negatively impacting the farmers’ income. With the current system, 450,000 bbls. of berries are paid a premium of 50 cents per bbl, yet when the berries are used only about half of them are actually considered No. 3’s (berries with the best color). So basically, the cooperative is paying a premium on 225,000 bbls. more than it should be, and that worked out to about $112,500 in 1970. It would cost the cooperative $10,000 to install a berry grader, plus the cost of another full-time skilled operator, but it would still impact their income greatly. The farmers’ would probably prefer that the cooperative continue to grade the color using pictures as a guide, because they are being paid a 50 cent premium on about half of their No. 3 berries that should actually be considered No. 2B.
A.The net gain on social optimal price is when the government establishes the price at a socially optimal level of 10 cents. This causes the production to decrease, which leads to a decrease in consumer benefits. But on the other hand, the decrease in production will preserve and save the resources since they don't need as many materials/resources as before. The value of decreasing consumer benefits is less than the value of saving the resources.
Haim, ziv, lamy, and Hodes 2006) essentially aims at determining the emergence and extent at which infants develop preference for their own race, whether such preferences are as a result of same race The research by Kelly,D.J., Quinn, P.C., Slater, A. M., Lee, K., Ge, L., and Pascalis, O. (2007) and (Bar-categorization, how exposure to different faces early in life could affect their preferences. These preferences also develop and become present at age 3 months old, they prefer own race faces. (Bar-haim et., al (2006).
This graph shows a price ceiling. P^e shows the legal price the government has set, but P^f shows the price the marginal consumer is willing to pay at Q^s, which is the quantity that the industry is willing to supply. Since P^f > P^e (MC), a deadweight welfare loss results. P^e and Q^e show the equilibrium price. At P^c the quantity demanded is greater than the quantity supplied. This is what causes the shortage.
* Utility model of consumption and allocation is realized allowing more cost efficiencies and controllable and predictive costs.
The reduced cost for S11, S41, S12, S22, and S32 is above zero because in the solution these values are zero, so increasing the “final value” of these trucks or leasing one of any of these trucks would lead to an increase in cost of 3515, 3515, 3725, 210 and 915, respectively. This also means that the cost would have to decrease by those respective numbers in order for the optimal solution to include those variables.