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Explain the three types of exchange rate systems: free-floating, managed, and fixed. Discuss the differences between them. What are the advantages and disadvantages of each system? Which system is the United States currently operating? Do you think the U.S. should change the type of exchange rate system? Why or why not.
In January 2001, $1 was equal to 1.06 euro. By January 2012, $1 was worth 0.76 euro. As a result of the change in the value of the dollar:
with the help of appropriate diagrams explain the following statement whether it is true false or uncertain an increase
Suppose a consumer spends her income on lobster and frozen pizza. Assume that the consumer has an income of $600, the price of lobster is $50, and the price of frozen pizza is $6. Using indifference curves and budget constraints show the income and s..
Moral Hazard. A worker can choose either high or low level of effort. The cost of high level is 1, the low level does not cost anything. If the agent chooses the high (low) level, principal gets π with probability pH (pL) and zero otherwise. Find the..
What is the current U.S. Fiscal Policy – is it expansionary or contractionary? If the current GDP has declined or expanded over the past 2 quarters at least, which of the tools of fiscal policy would you use to try to rein in the economy and how is t..
Suppose a firm has a fixed $100 to spend on K=10, W=5. What combinations of inputs can the firm buy? What is the equation for the line that represents all of these combinations?
Tina is the sole owner of Tina's Lawn Mowing, Incorporated (TLM). In one year, TLM collects $1,000,000 from customers to mow their lawns. TLM's equipment depreciates in value by $125,000. TLM pays $600,000 to its workers, who pay $140,000 in taxes on..
Change is a constant factor in both in our personal and work lives. There seems to be resistance to change whether the change will be good or bad. Why do people resist change?
Assume that the price elasticity of demand is −.5 for a certain firm's product. If the firm decreases price, the firm's managers can expect total revenue to: Maximizing total benefits is never equivalent to maximizing net benefits. Maximizing total b..
Suppose the demand for labor market is given by Labor = 408−2wage and the market supply is given by Labor = 10wage. Suppose a minimum wage is placed on wages that sets the wage at $50. Find the quantity demanded and supplied, and the amount of unempl..
q.a young physician makes 180000 per year with an annual salary increase of 2. he is interested in buying a house. he
Explain why do we consider a business-cycle expansion different from long-run economic growth. Why do we care about the size of the long run growth rate of real GDP versus the size of the growth rate of the population.
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