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1) Suppose Mayor Strange comes to you and asks you whether or not Montgomery, AL should bid for 2024 Olympics. He says that a group of economic consultants has said it will be a major boon for Montgomery’s economy. What kind of things did they likely claim in their report to the Mayor? What factors did they likely neglect to mention? Is it likely or unlikely that Montgomery would see a major impact? Why or why not?
2) After accepting your recommendation not to pursue the 2024 Olympics (hint, hint), Mayor Strange comes to you with another idea. The Jacksonville Jaguars are considering moving to Montgomery. They have said they will do so if the taxpayers of Montgomery will pay for a large, brand new stadium (in addition to the renovated Cramton Bowl, and the new ASU stadium). Why might Montgomery benefit, and how would we measure that? What sorts of negative consequences might come from the Jags’ relocating to Montgomery (aside from abysmal football)?Why would the benefits to the city likely be overstated? Why are teams like the Jags constantly interested in new stadiums anyway (Hint: think about their revenue function).
The marginal utility of a pizza is 20 utils, and its price is $2. If you buy one unit of each good, will you achieve consumer equilibrium? If not, how can greater total utility be obtained?
If the United States imports a specific product and exports a different product, what is the likely effect on the price of the product that the United States imports?
The price elasticity of demand for natural gas is -1.2, and the price elasticity of supply for natural gas is 0.6. If the government imposes a ceiling price for natural gas that is 10 percent below the equilibrium price, the result will be a shortage..
Explain the assertion that businesses can lose rights if they do not diligently assess and pursue intellectual property protection.
A clinic finds that it can reduce costs by eliminating appointments. The clinic is able to eliminate some telephone staff, and physicians become more productive. Patients wait until the physician is available, so the physician has virtually no downti..
Calculate the original market equilibrium price and quantity in absence of the price support policy.
The current exchange rate between the Japanese yen and the U.S. dollar is 120 yen per dollar. At current prices, a basket of goods that costs $100 to produce in the U.S. would cost ¥11,000 to produce in Japan. What is the current real exchange rate b..
The main tool that the federal reserve uses to conduct monetary policy is
Two identical small poor countries, Country A and Country B, have a well educated population but small capital stock. Initially they both have closed economies. Country B opens up for the world and can be observed as a small open economy. In what cou..
What will be the impact of a fiscal expansion in a large economy like the U.S. on aggregate income, the exchange rate, investment, trade balance and interest rate? Assume that the large economy in question has aborting exchange rate.
In regard to developing countries, if American foreign policy makers have to choose between supporting an election that brings to power an anti-American government or supporting a dictator who is pro-American, which should they choose, and why? ? How..
Suppose you are a manager for a company that produces grape jelly. Which of the following is the best way for you to reduce your risk
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