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Question1: Determine absolute advantage and comparative advantage and explain why will resources specialize according to their comparative advantages? Why will this specialization increase production? Why will specialization increase trade?Question2: Who is counted as employed or unemployed in the unemployment statistics? What groups in society are not represented at all in the unemployment statistics (i.e., who is not a part of the civilian labor force)? How is the unemployment rate measured?Question3: Explain the limitations of using Gross Domestic Product (GDP) as a measure of economic activity.
Suppose are predicting a steady decline of 6% per year in dividends for the foreseeable future. What is the most you would be willing to pay for this stock.
Expalin how is the above stimulus bill going to be financed. According to the (Keynesian) theory, does it matter where the money comes from.
Differences between Classical and Keynesian views of economy. Explain the situations that led to development and dissemination of Keynesian economic theories.
Determine what are economic decisions made in tradition, command and market economies and what are the pros and cons of each?
Describe the core principle of the standard and whether or not you are in agreement with the proposed standard.
Illustrate what is mean by "neutrality" or "superneutrality" of money. Give examples and discuss when they are likely.
During a recession the government causally raise government spending
Apart from the abundance of these resources, you also see a lot of poverty. Can you provide an economic explanation of why poverty exists
Illustrate what is the present value of a contract that promises to make year end payments to you of $100 for the next 20 years if the interest rate is 5%.
Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.
Illustrate what policy options are available to the government to counter the effect of a sharp fall in real estate values on the economy.
The level of investment down because of a lack of confidence in the economy. Interest rates are kept artificially low by the Federal Reserve for several years.
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