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1. Consider two countries—A and B. Country A is characterized by a command economy, absence of property rights, high entry barriers for new businesses, and forced child labor. Country B, on the other hand, is characterized by well-defined private property rights, a developed market system, and no entry barriers for new businesses.
a) Which of the two countries is likely to oppose creative destruction more? b) Why?
2. Consider two countries: A and B. Assume that both countries are exactly similar to the year 2000. At the beginning of the year 2000, both countries decide to change their strategy for economic growth. Country A plans to encourage immigration and increase human capital in the economy to achieve sustained growth, while Country B decides to make significant investments in research and development to achieve sustained growth.
A) Which of the two countries is more likely to experience continued growth and why?
In the two goods consumer demand setting, an increase in one of the prices of a given level can have the same effect on the budget constraint as a given (maybe different) increase in income. A consumer who can borrow and lend at a constant interest r..
Illustrate what is the effect on equilibrium price and quantity in the market for oranges if a new orange picking machine is developed.
"Strategy has two major dimensions: positioning for the present and adapting to the future" (Jordon & Grant, p. 170). In adapting to strategic change, structures, systems, and culture are the most stable parameters of an organizational design and tho..
A forty-year annuity-immediate makes monthly payments. During the first year the monthly payments are $100 each. The payments within each year are level; however, the monthly payments in each of the years two through forty are 4% higher than those in..
What does Tim Harford, author of the undercover economist, think are the major reasons for increasing inequality in English speaking countries?
Which economy is better off, country A, in which output is growing 6 percent per year with population growth of 4 percent per year, or country B, in which output is growing 4 percent per year with population growth of 1 percent per year?
What are the various ways in which the Federal Reserve influences the economy? What important tools do they use in influencing the commercial banking system?
Illustrate what is difference between contractionary and expansionary monetary policy. Illustrate what are pros and cons of using expansionary.
Suppose that the long-run aggregate supply curve is positioned at a real GDP level of $15 trillion in base-year dollars, and the long-run equilibrium price level (in index number form) is 115. What is the full-employment level of nominal GDP?
Allysha just borrowed 46,300 dollars. She plans to repay this loan by making a special payment of 5,800 dollars in 5 years and by making regular annual payments of 7,900 dollars per year until the loan is paid off. If the interest rate on the loan is..
Illustrate what would happen in the market, please Specify whether the policy would cost the Chinese government anything also if so, and explain how much.
Suppose that Bridget and Erin spend their incomes on two goods, food (F) and clothing (C). Bridget’s preferences are represented by the utility function U(F,C) = 10FC, while Erin’s preferences are represented by the utility function U(F,C) = 0.20F2C2..
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