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What are the broad empirical regularities associated with growth and development that modern theories of economic growth attempt to explain? Enumerate and describe briefly.
Determine whether each of the following, other factors held constant, would lead to an increase, a decrease, or no change in the level of real GDP demanded:
Suppose that the government is debating whether to spend $100 billion today to address climate change.
How is rent determined on plots of land of different quality? Does it matter whether or not the supply of factor inputs used on the land is perfectly elastic? Suppose that the factor supply curve is perfectly inelastic. What happens to land rent on e..
Should the Miami plant be closed or continue to operate at a loss in the short run? How would you explain to the incorrect party that he is wrong?
Amalgamated Popcorn, Inc. is a fairly small firm selling bags of flavored gourmet popcorn in a popular mall. As shop owner and operator, you have observed that your daily sales tend to follow a pattern that can be stated as: Compute the elasticity co..
An auto-service establishment has estimated its monthly cost function as follows: Where Q is the number of cars it services each months and TC represents its total cost. The firm is targeting 35,000 net monthly profit servicing 2000 cars. What price ..
If the government were to increase taxes on gasoline, what will happen to the total government revenue? Why? What are you assuming about the elasticity of the demand curve of gasoline? What is the formula for elasticity? Would the government make mor..
The production function of a typical food manufacturer has been estimated to be q = K^1/3 L^1/2 where K denotes capital and L denotes labor. In the short run, the firm’s capital is fixed at K ¯ =1000. Derive the short run cost function of the firm. D..
After a few years of monopoly, the family that owns the coca-cola monopoly gets in a flight, and they split the company in two. Now there are two large coca-cola retailers in your area, and each retailer must decide whether to charge a high or low pr..
If n, d, z, α, s are the same for two country A and country B, but today the level of capital per capita is higher in country A. What does the Solow model predict for the short term growth rate of income per capita for these two countries? What is th..
Consider a small open economy in the short run where the government imposes trade tariffs on corn. Under which regime (floating or fixed exchange), are the tariffs more effective in increasing output? Under which regime does the money supply increase..
Describing how the average and marginal grade concepts, and other economic concepts which we have covered up to this point, relate to your everyday life. Begin by stating your average grade either as a percentage or as GPA.
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