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Q1. Illustrate what is a random walk? Explain how is Hall's random-walk model of consumption related to the life-cycle (LCH) and permanent income hypotheses (PIH)?
Q2. To increase a company's performance, a manager suggests which the company needs to increase the value of its product to customers. Describe three ways in which this advice might be incorrect. Q3. A. Illustrate what is Tobin's q, and illustrate what does it have to do with investment? Explain how Tobin's q is can be related to the neoclassical model of business fixed investment?
B. Assume a loss in the export sales reduces GDP which causes a recession. Discuss which Explain how drop in the export sales sets in an ongoing recession using accelerator model.
Each customer purchases their smoothie at the store where the total cost, i.e. price of smoothie plus travel cost, is the lowest.
If one draws MC curves pre and post innovation as well as the Marginal Revenue line for a monopoly and the MR in a competitive situation.
A price index for nonresidential construction was 14 in 1949, 92 in 1987, and 114.5 in 2000. According to these numbers, what did the hospital cost approximately.
What would happen to the position of the demand curve for dental services if patients had to wait even longer for an appointment with a dentist.
Impacts on currency markets and on economic conditions within the country and globally.
Suppose that an increase in crime (O) also results in a per unit amount of social damage equal to d(d>0).
Use this equation to explain the level of income at which there is a zero lower bound on the federal funds rate
Which is a tax on profits generated from mining of iron ore and coal.
Amalgamate the information you have gathered and tell the economic consulting firm which actions you think OPEC will take over the next year based on your answers.
Demand curve is d1, what will be the change in her revenue. If her demand curve is d2 what will be the change in her revenue.
Sharp rises in the cost of milk, grain, and fresh fruits and vegetables are hitting cafeterias across the country, forcing cash-strapped schools to raise prices or serve more economical dishes.
Explain the argument that lower corporate tax rates can increase tax income in Kenya. Reflect on the Laffer curve in your explanation.
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