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Two of the most important concepts we’ve talked about in class are the technical rate of substitution between two inputs and the ratio of the price of those inputs. Explain, briefly, what each of these concepts represent in terms of tradeoffs, and why they are often equal when then firm is making its cost-minimizing input choice.
Illustrate what are some more common restrictions on the activities of multinational corporations in host countries
Foreign aid: Consider a Solow economy that begins with a capital stock equal to $300 billion, and suppose its steady-state level of capital is $500 billion. Summarize what this exercise teaches you about the possible consequences of foreign aid. In t..
Discuss which economic relationships you have studied up until now (not just in this class, but in all your economics classes) could be estimated using the simple linear regression model as well as the information you would need to estimate such a re..
All Open University Malaysia (OUM) Students are identical and they are all indifferent between attending the OUM and their next best alternative. Students eat are the student union.
Discuss the difference between second-party payment and third-party payment in regards to insurance companies.
Indicate whether the following shocks are real shocks or aggregate demand shocks.
Consider the difference between empirical scientific evidence and anecdotal evidence. Explain which is considered more useful to the study of public policy and state why. Provide appropriate examples and support for your rationale.
Illustrate what additional information is needed for you to be able to compute the price elasticity of demand for DVD players.
Newspaper reports frequently suggest that the administration (regardless of who is president) wants the fed to lower interest rates. Why do you think that might be the case?
Through critical thinking in philosophy, we learn that traditions, beliefs, opinions, and assumptions can hinder us from arriving at logical decisions. Many of you are used to basing your decisions on any or all of the above (recall Plato’s Cave). Wh..
Consider a linear city of length 1 in which the consumers are uniformly distributed. There are two firms located at the extremes of the linear city: firm 1 is located at the left-hand extreme, and firm 2 is located at the right-hand extreme. Derive t..
How does an increase in interest rates affect the present value of a future payment? How does an increase in the size of a future payment affect the present value of a future payment?
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