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Economics Problems
PROMPT 1: Does the existence of market failures mean the market system doesn't work? Explain.
PROMPT 2: Given that inflation exists to some extent every year, why don't firms generally give at least cost of living raises every year to employees (which isn't really a raise, but just keeping purchasing power the same)?
PROMPT 3: Is achieving and/or maintaining economic growth a socially beneficial goal? What might an alternative goal be?
PROMPT 4: What did the recent "Sovereign Debt Crisis" in Europe have to do with Fiscal Policy?
PROMPT 5: What are the advantages and/or disadvantages of using monetary policy instead of fiscal policy?
PROMPT 6: Is the increase in international trade a worthwhile trade-off for the increased globalization? Why? If not, how would you change the ways countries interact?
Are DSM programs substitutes for peak-load pricing? Under what circumstances are DSM programs socially inefficient? Efficient?
“The short-run supply curve of a perfectly competitive firm is the firm’s marginal cost curve.”
Compute the elasticity of demand in going from 2 unit to 3 units. Is the demand elastic or inelastic in this range.
A country has the per-worker production function, y=5k1/2, where y is the output per worker and k is the capital- labor ratio. The depreciation rate is 0.15 and the population growth rate is 0.05. The saving function s=0.2Y where s is total nation..
Assume that all states adopt a serious no-fault rule to cover automobile accidents, so that it becomes impossible to sue for damages after an accident.
According to your own experience discuss and describe Convertible securities.
Which of the following is consistent with the law of supply? a) As the price of calculators falls, the supply of calculators increases, ceteris paribus.
From a macroeconomic standpoint it would be most desirable to have a decrease in personal consumption expenditures/spending (aggregate spending by the household sector) A. when a recessionary gap exists. B. when an inflationary gap exists. C. durin..
A) Draw a graph illustrating this monpsonistic scenario with employer discrimination. Note employment and wage for black players and for equally talented white players. B) Explain why in this scenario both the employer and black employees are worse..
How does the income approach to measuring GDP differ from the expenditure approach? Explain the meaning of value added and its importance in the income approach. Consider the following data for the selling price at each stage in the production of ..
In some of these countries, there have been moves to privatize the economy by selling state companies to private owners. Would the countries have borrowed more or less if their economies had been privatized earlier?
Define what is the money that a consumer earns from either work or investment such as dividends distributed by companies to its shareholders and the gain realized on the sale of assets such as a house.
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