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Given the current situation in many African countries, do we see the Tragedy of the Commons occurring? Consider not only how the “tragedy” is impacting the current population but also how hit may be devastating to coming generations. Give examples and support your claim with evidence and economic theory.
Suppose First National Bank has $200 million of assets and $20 million of equity capital. If First National has a 2% return on assets (ROA), what is its return on equity (ROE)? Suppose First National's equity capital declines to $10 million, while it..
Homer's boat manufacturing has a monopoly on boat sales in the region. Homer's marginal cost of the 8th boat produced is $1,200. He produces only eight boats and can sell all eight boats for $1,500. The elasticity of demand at this price is -2. Is..
Suppose the U.S. economy is in a recession and faces relatively high inflation. List the twin problems which policymakers face. List the monetary policy approaches the Fed could take to resolve each problem (i.e, do not list the policy tools—just des..
How did speculation contribute to the stock market crash of 1929? Cite two examples of speculation at the time. Given that only 10% of households held any stocks, how did the stock market crash end up collapsing the whole economy? Name and explain tw..
Calculate the percentage growth rate in real GNP per capita in each of the years 1996 through 2002 from the previous year, using the definition of growth rate.
Describe the relevant criteria that the Australian Bureau of Statistics use to determine whether a person is ‘unemployed' and what problems do you see using this measure?
In the following problem, assume that the UK currency is the pound sterling (PST) and the currency in the rest of the Europe is the euro (EUR).
Illustrate what is the annual cost for chocolate syrup buffer stocks. Illustrate what impact does the variability of demand seem to have on buffer stock.
Which of the following is not a correct comparison between an expansionary monetary policy in the basic aggregate demand and aggregate supply model and in the dynamic aggregate demand and aggregate supply model? In the dynamic model, expansionary pol..
Convert a constant dollar payment of $1,000 made 6 years from now into actual dollars in that same time period (i.e. 6 years from now) Given that market interest rate i = 10%, inflation rate f = 5% annual. A personal property asset has a purchase pri..
The market system cannot supply each person with an unlimited amount of resources, so choices must be made. Given the following events, Identify whether this event is a macroeconomic issue or a microeconomic issue and explain why you came to that con..
The management of Madeira Manufacturing Company is considering the introduction of a new product. The fixed cost to begin the production of the product is $33,000. The variable cost for the product is uniformly distributed between $20 and $27 per uni..
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