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Q. When McDonald's Corp. reduced price of its Big Mac by 75% if customers also purchased French fries and a soft drink, Wall Street Journal reported that company was hoping novel promotion would revive its US sales growth. It didn't. Within two weeks sales had fallen. Using your knowledge of game theory, illustrate what do you think disrupted McDonald's plans?
Explain how they will help to improve the GDP as a tool for measuring the well-being of a nation.
Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to calculate the percentage increase in real GDP per person from 1987 to 2005.
There are no gains from reducing class size below 20 students, the relationship is constant in the intermediate range between 20 and 25 students, and there is no loss to increasing class size when it is already greater than 25."
If 100 % of deficit is financed by sale of securities to federal agencies, illustrate what happens to amount of debt held by public Illustrate what happens to level of gross debt.
Elucidate why the general level of wages is higher in the United States and other industrially advanced countries. What is the single most important factor underlying the long-run increase in average real-wage rates in the United States.
The article also notes that, as a consequence of the rent control laws, the price of owner occupied housing has increased greatly. Utilize a supply and demand model to model this phenomenon as well.
Illustrate what would happens to the equilibrium price and quantity. The widget firm in Springfield is competitive,with numerous buyers and sellers.
If you get this classmate as your partner on a series of projects throughout the year, rather than only once, Explain how might that change the outcome you predicted in part (b).
Explain how would you expect each of the following events to affect the amount they save each month.
Suppose that due to a political conflict inside the country, there is a risk the government will default in its debt.
This question uses the general monetary model, where L is no longer assumed constant.
Illustrate what factors contributed to Hong Kong Disney's poor performance during it's 1st year
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