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1. How is government debt related to the government deficit? What factors contribute to a large change in the debt-GDP ratio?
2. Why do economists suggest that tax rates be kept roughly constant over time, rather than alternating between high and low levels?
3. Discuss four reasons why the Ricardian equivalence proposition isn’t likely to hold exactly.
If neither signs, both receive a because the professor does not have sufficient evidence to prove cheating. Draw the payoff matrix. Which outcome do you expect? Why?
1. There is a fruit seller who has 30 Kgs of apples to be sold and he wants to fix a price so that all the apples are sold. There are three customers in the market and their individual demand functions are given below:
Padre works for a trade magazine that publishes. lists of Power-Sizing Exponents (PSE) that reflect economies of scale for developing engineering estimates of various types of equipment. Padre has been unable to find any published data on the VMIC ma..
To what degree does real GDP measure to health of an economy? How is it possible to make valid international comparisons of real GDP? Support your answer with examples.
Many people feel the Fed, which is largely independent of Congress and the President, is too powerful. In fact, the Chairman of the Fed Board of Governors, Ben Bernanke, has been called the second most powerful person in the country. Do you think the..
How can free market features can be introduced to help alleviate unaffordable rental costs through free market operations of supply and demand?
A project has cash flows of -$12,000 in Year 1, +$5000 in Years 2 and 3, -$2000 in Year 4, and +$6000 in Years 5 and 6. Find the interest rate of 12%. Find the interest rate that gives a net present value of zero.
Oregon has an income tax but no state sales tax, while Washington has no state income tax but does have a state sales tax. Oregon residents can deduct the state taxes they pay (the income tax payments) from their federal income taxes, while Washingto..
Now suppose the economists allow for crowding out. Illustrate what would their new estimate of the MPC be larger or smaller than their initial one.
Per the Kyoto Protocol, European countries have targeted a reduction of CO2 emissions. There are two main types of coal-fire plants in the EU: one type is designed to be able to be retrofitted with abatement equipment at a lower cost than the other t..
Should those who labeled the product pink slime and questioned it unfairly be disciplined in any way? Or, is this just an example of the market at work and nothing should be done? What should Roth and his company do now? What further action should th..
To speed relief to isolated South Asian communities that were devastated by the December 2004 tsunami, the U.S. government doubled the number of helicopters from 45 to 90 in early 2005. In terms of “production” of relief, what kind of return to scale..
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