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a) Describe two reasons why a country may be facing a Balance of Payments (BOP) deficit.
b) What is the Official Reserves Account (ORA) and why is it more important for countries under a fixed exchange rate regime than for those under a floating exchange rate regime?
Calculate the elasticity of demand for good X with respect to the price of X, the price of Y, income, and advertising. Calculate consumer surplus at the profit-maximizing price if the marginal cost is $264.
Why does the slope of the aggregate supply curve change from the short run to the long run? What are the differences between classical theory and what Keynes believed?
Explain the concept behind the governments TARP program and the ensuing stimulus packages that were implemented.
Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production function is P = 2C + 5S. If the price of corn feed is $2 and the price of soybean feed is $6, what is the cost minimizing combination of producing P = ..
Suppose you plan to purchase a Ford Mustang and need a car finance of $12,000. You take the loan from the K-State Credit Union at 3.5% interest rate. What is the yearly payment to the bank to pay off the loan in 10 years? Please do not just write the..
NY state will soon implement a $15/hour minimum wage for fast food workers. What is your prediction of the short run effects of this policy? What is your prediction of the long run effects?
How much “control” does Congress have over spending based on the fiscal budget of 2017? Evaluate the amount of discretionary spending vs. non-discretionary spending.
Grandpa would like to deposit some money now for his grandson to have available to beginning withdrawing $25,000 per year for four years, starting 5 year from now. If the money earns 6% interest per year, the amount that Grandpa must deposit is close..
Draw a Phillips Curve. Explain why economists claimed that the Phillips Curve represented a menu of social choice. Do economists still believe in the menu view of the Phillips Curve? What view has replaced the original view?
When a firm uses debt in its capital structure, it is referred to as a leveraged firm and this concept is referred to as financial leverage. Operating leverage refers to a firm's fixed costs of production. The higher the fixed costs, the greater the ..
What market structure best characterizes the market in which University of Phoenix competes?
Consider an employee who does not receive employer-based health insurance and must divide her $700 per week in after-tax income.
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