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In Solow’s growth model, illustrate using a diagram what will happen if population growth rate is reduced? What will happen to GDP? GDP per capita? Will GDP per capita grow at steady state? How does the extended Solow’s model help explain GDP per capita growth in developed countries?
What are the differences between the Federal Reserve and a National Bank (specifically, with regard to their intervention policies and powers for acting within the economy)?
Evaluate in relation to the key export readiness requirements and identify any characteristics that may be important to the company's potential export success.
What is endogenous growth? How do endogenous growth models differ from the neoclassical models of growth? How do the implications of an increase in saving with regard to both the level and the growth rate of output differ between the neoclassical gro..
Suppose the Fedral Reserve lowers the gap between the discount rate and the federal funds rate to 0.5 percentage points. graphically illustrate this policy using the federal funds market and conclude what effect, if any, this will have on the economy..
Why are firms are attracted to foreign markets, for example, to increase profits and revenues and to gain access to cheaper manufacturing. How may this affect the domestic country of the firm?
What is the equation of the supply curve if input prices are $10 and the price of Z is $20? Graph the supply curve that you found in part a) showing intercepts and slope. What is the minimum price at which the firm will supply any of good X at all?
Governments can use subsidies to increase demand. For instance, a government can pay farmers to use organic fertilizers rather than traditional fertilizers. That subsidy increases the demand for organic fertilizer. Which industry would probably spend..
Suppose that a market with an inelastic demand curve experiences an upward shift in the supply curve. Using comparative statics, analyze how the equilibrium price and equilibrium quantity in this market will change as a result of an upward shift in t..
A $1 million, ten-year term life insurance policy for a fifty-year old male in Massachusetts costs around $1,200 per year. The same policy for a female costs around $980 per year. Explain why life insurance for a female costs less than for a male.
Suppose Clive spends all his money on running shoes and (cups of) tea. Clive’s budget is $50 and the price of shoes is $10. According to the information above what is the price of tea in case A and in case B? On a big and precise graph, show the opti..
Product Differentiation via Location: A salesman’s territory is a single, mile-long street. Consumers of his product are equally distributed along the street. He has decided to set up a store to sell his product. In addition to this salesman, there i..
The difference between the cost to produce the CDs and the price you paid for them spending $30 on two new CDs spending $30 on dinner and a movie with your friends.
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