Following the unexpected interest rate increase, the price of which of the following risk-free bonds will drop the most (in percentage to its pre-interest-rate-increase price)
The monopoly works in a market with demand curve Q = 1190/P7, its total cost function is given by TC = 2Q. The government decides that the firm must split into two, and these two firms will compete by simultaneously choosing prices. Assuming one-shot interaction, what is the percentage change of the
Economist G calculates income inequality in some real-world country based on the Gini coefficient and the pretax (gross) incomes of all households in the society. Economist D calculates income inequality in the same country based on the Gini coefficient and the disposable incomes of all households i
The diagram shows a competitive labor market. Which one of the following could NOT cause the increase in the wage rate from W to W1 as shown in the diagram?
In this diagram, you can see the income distribution in Bolivia in 2020 based on the available microdata. The dashed line is the cumulative income (left axis), colorful bars represent income of all percentiles (without accumulation, right axis). What is the closest estimate of the Gini Index?
A monopolist with the demand function Q = 100 − P and marginal cost MC = 20 faces the perunit tax of t =10. By how much will the price for consumers increase?
Consider a preferred share that entitles the shareholder to receive 600 on April 1 each year forever, however, the firm can postpone payments in some cases. On March 31, 2022, when the share price was6600, the firm announced that it decided to postpone the payment for 1 year because of insufficient
An optimist is trying to get a job as a CEO. Her constant optimism is well-known to everyone: she always believes that the probability of a good outcome is higher than it actually is. Which of the following firms should hire her?
In most of the tasks about inequality that you might encounter, the data on income or wealth is given and is not questioned. In reality, however, the estimates of these numbers can be biased, and these biases can make an unjustified impression about whether inequality is high or low. Unjustified imp
There are two groups of consumers of solar panels in country S: 150,000 households who consider purchasing them because they care about the environment and 200,000 households who consider purchasing them because it is trendy (this is sometimes called the bandwagon effect). The demanded quantities of
There are 100 countries in the World. Demand in country number i for natural gas is given by Di(pi) = 100i - pi, while its supply is given by Si (pi) = ipi. (a) (5 rp) Find equilibrium prices pi* when countries
One of the problems with the GDP indicator is its inability to account for the production of goods and services in the underground (shadow) economy. By this we mean not only illegal production of forbidden goods and services but also housework, helping friends, etc. — everything that is not observab
Consider a closed economy where consumption spending depends on output: C = C0 + 0.8 Yd, where C0 > 0 is autonomous consumption and Yd is disposable income (income after tax). The tax rate is flat at the level of 20% on all income without double taxation.
