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Two restaurants are on the same block. One has been opened for 10 years and its a thriving business. The other one has been open for only a year. They both want to expand. When the two owners to to the local bank looking for a loan, which one is likely to get a lower interest rate? Explain in terms of the risk-return principle.
The currency of Iceland is called the Krona. in July, 2007 the exchange rate was roughly 60 krona to a dollar. In July 2011, the exchange rate was roughly 120 krona to a dollar.
a) Over this period, would you expect exports from the US to Iceland to get cheaper or more expensive in Iceland?
b) Would you expect living standards in Iceland to rise or fall?
c) Is the krona appreciating or depreciating against the dollar?
Explain the policies that are available to the government to increase Aggregate Supply. Explain how the fractional reserve banking system creates money. What is a liquidity trap? Explain using a money supply- money demand diagram. Explain the fiscal ..
On September 18, 2003, hurricane Isabel struck the North Carolina Coast, causing extensive damage. For several days prior to reaching land the National Hurricane Center had been predicting the hurricane would come on shore between Cape Fear, North Ca..
We are looking at the market place for good ABC. Supply and/or demand conditions are changing. Assume that after these changes occur, the equilibrium price increases while the equilibrium quantity decreases. Now, based on those possible changes suppl..
Graph the production possibilities frontier over one day for this restaurant. In the graph, you must identify the points where transfer of a worker from one job to another starts to take place, by showing the coordinates of the points.
This is where the story that Country (A) broke all the financial rules begins to fall apart. In a lot of ways, the IMF's intervention was typical. Country (A) sharply reduced government spending and increased interest rates all the way up to 18 perce..
The single price monopoly faces a demand curve of p=90-Q and a constant marginal (and average) cost of m=$30. Find the profit maximizing quantity (or price) using math. Determine the profit, consumer surplus, welfare, and deadweight loss.
Reduce the game by IEDS as far as you can. For the original game, find all Nash equilibrium in pure strategy and the equilibrium payoff. For the original game, find all Nash equilibrium in mixed strategy and the equilibrium payoff.
Illustrate what are the fours upply factors of economic grwoth. what is the demand factor? What is the efficiency factor.
The main argument against monetary policy is that it affects only nominal variables, not real variables. Explain this argument using the two methods below. Explain and show on a graph the short-run and long-run equilibrium changes in the AD/AS model ..
What are “health disparities”? Why are they important? What makes them worse? What makes them better? What can we do to address them?
A monopoly has a demand curve of D (p)=150-3P. If marginal cost is equal to 2, what is the profit maximizing quantity?
Under oligopoly, if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.
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