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Some economists argue that private firms will not undertake the efficient amount of basic scientific research.
a. Explain why this might be so. Classify basic research in one of the categories; private goods, natural monopolies, common resources, public goods
b. What sort of policy has the United States adopted in response to this problem?
c. It is often argued that this policy increases the technological capability of American producers relative to that of foreign firms. Is this argument consistent with your classification of basic research in part (a)?
Suppose that each US worker can produce 8 units of food or 2 units of clothing daily. In Fredonia, which has the same number of workers, each worker can produce 7 units of food or 1 unit of clothing daily.
In 1939, with the U.S. economy not yet fully recovered from the Great Depression, President Roosevelt proclaimed that Thanksgiving would fall a week earlier than usual so that the shopping period before Christmas would be longer.
What is the forward premium on euros (the forward discount on dollars)? What is the difference between the interest rate on one-year dollar deposits and that on one-year euro deposits (assuming no repayment risk)?
A company that produces T-shirts and sells its items in a perfectly competitive market. The manager forecasts the wholesale value of T-shirts next year to be $7.00.
What role did Swiss government and politics play in 2001 liquidity crisis and grounding of Swiss air and did the government and politicians act unethically together with the banks.
Prepare journal entries to record the revaluation on 1 July 2013 and the subsequent sale on 1 July 2014 and revaluation and de-recognition of depreciable assets
Fred Smith of Dodge City Bank has received many loan applications from local small businesses. The applications are supported through many documentation, including the business plans of the companies.
Looking back to the book, it discusses the Japanese government and their government cutting taxes. Do you believe the Japanese were right or wrong to use Fiscal Policy in that manner Why or why not
As in class, assume that the capital account is equal to zero, as are capital gains on external wealth. Using the notation we worked with in class and given the assumptions made in problem 2, state the "generic" account (that is, the current accou..
Give 3 reasons why the average person in Virginia is wealthier than the average person in Haiti. (Use the wealth equation) Give one advantage that people in Haiti have over people in Virginia. Why does this advantage not make them wealthier than p..
International Monetary Fund information indicate that, with 2000 = 100.0, Japan's export value index in 2006 was 95.3, its import price index in 2006 was 127.2,
What would happen to the growth rate of the money supply if foreigners lost confidence in the US dollar as a result of current uncertainty over the crisis of the fiscal cliff in the US economy while the Fed was trying nonetheless to maintain its c..
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