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Define economies of scale. Is there evidence of economies ofscale in the airline industry? (Hint: Consider Low-Cost-Carriers).In large commercial aircraft manufacturing?
What is seignior age? In what sense is it an inflation tax? What are shoe-leather costs? What are menu costs?
Economics 714 Macroeconomic Theory Spring 2016 - Problem Set 2. Now suppose that there is full trade in goods and assets in every period. Find new expressions for the riskless interest rates (call these rift, for "free trade"). Do the interest rate..
What is meant by the Golden Rule and use the Mankiw Golden Rule graph to discuss whether this increase in the US s would have any effect on the GR variables of interest.
United States has absolute advantage over many countries in production of most goods and services. Yet, the country is running the record trade deficit year after year. The current trade deficit is about six percent of the country's GDP. Is it a ..
Assume that the legal reserve requirement is 10 percent on all deposits. Suppose BoA has $200 million in checkable deposits, $30 million in reserves, $50 million in securities, and $150 million in loans. What is BoA's bank capital? Draw a balanc..
Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2002 and 2003 from the preceding year. For each year, identify the variable that does not change. Explain in words why your answer makes sense.
the values below are in billions of dollars.c 800i 100g200im 150ex100a. what is output?b. if taxes t are 100 billion
The global economy in 2011 appears to be headed into a double-dip recession. Based on your knowledge of aggregate demand and aggregate supply, suggest the reasons and causes for the downward tailspin of the economy.
Why should countries engage in international trade rather than remaining self-sufficient and avoiding the unfair competition of low-paid foreign workers?
Suppose a government is established in a country where none previously existed. The government spends 110, financed by borrowing, to provide public services. If autonomous consumption plus investment is 190 and the marginal propensity to consume MPC ..
Differentiate between pareto optimality and social optimality. Which one is more sensitive to the general economic welfare?
A county is considering using a piece of park land for one of two alternative recreation projects. Project A would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years.
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