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Economics
What are the advantages and disadvantages of a fixed exchange rate system?
What are the advantages and disadvantages of a floating exchange rate system?
If the CPI went from 106 to 111 during the past year, Illustrate what was the rate of inflation.
At the end of 2002, the (1-year) interest rate was 1% in the U.S., and 26% in Argentina. Recall that at the same time, the spot rate for the Argentine currency was Peso 4.00/$.
Make a monthly sales forecast for the firm for 2001. Why would the managers of the Chemical Company want monthly sales forecasts of this kind.
Elucidate why, at one point in time, a Keynesian approach to managing the macro-economy might be appropriate while, at another point in time, a classical approach might be more likely to produce a superior outcome.
Compute the elasticity of demand for every parameter.
Last year, Pat and Chris occupied separate apartments. Each consumed 400 gallons of hot water monthly.
Illustrate what does the fundamental assumption of marginal utility theory suggest about the connection between money and happiness.
Evaluate: "The fact that some airplanes collide is evidence there is 'too little air traffic control'." (Be sure to explain what too little might mean.)
Illustrate what does the concept of opportunity cost indicate. Consider how the production of one good affects the possible production level of other goods.
Illustrate what price is required to maximize income but keep profits at a minimum of $300?
Discuss how each of the following developments would affect the supply of the money, the demand for money, and the interest rate. For each case, describe what happens in closed economy and in small open economy. Describe your answers with diagrams.
Earlier this year the Federal Government USA approved the merger between Sirius and XM satellite radio companies. What, if any, shortcomings arise from a monopoly pricing strategy (efficiency and consumer surplus)?
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