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1) What is a monopolist, and what is required in order for a monopolist to earn profits in the long run? How is government involved with the creation of barriers to entry?
2) What is the most important characteristic of monopolistic competition? How do firms behave differently from perfect competitors? What are the implications of having a large number of firms in a monopolistically competitive market?
3) Suppose that the market for autoworkers is initially in equilibrium, but then the automakers purchase capital goods that are a substitute for workers. What happens to the market for autoworkers? Explain. Now, suppose that the automakers improve working conditions at the plants. What are the effects? Explain.
4) Discuss the significant laws passed since the Great Depression that affect labor-management relations. Explain.
5) Explain the three categories of balance of payments transactions.
A good which if supplied to one person is supplied to all and whose consumption by one individual does not prevent its consumption by another individual is known as: a private good. a public good. an external good. an internal good.
Economic theory and history explains that less developed countries that open their economies to international trade and capital flows will grow faster and reduce poverty.
imagine an economy with a standard cobb douglas production function population growth of 21 total productivity growth a
macropoland a country that is a natural gas and oil importer has a natural rate of unemployment at the full employment
How much does the gross price increase in each market
Make sure to include some final recommendations and strategic initiatives.
Then list one good reason to allow tire imports and one good reason to restrict tire imports. Give a short explanation for each reason.
Given an increase in spending of $1,000, and a Marginal Propensity to Consume of 80% (8/1 0), what would be the total increase in the GDP (as a result of the Multiplier?) What would the Multiplier be? Show your work.
Why might bargaining break down when parties negotiate to remedy a market failure and its associated externality?
Sometimes one's choices may involve catastrophic decisions and bear great risk and yet there can be no clear answer. For example, if a person gets a divorce, shutters a plant, sells a losing investment, or closes their business, will he or she be ..
Use a hypothetical example to illustrate whether you agree or disagree with the following statement, "Unemployment will go up more if the demand for labor is elastic, because the demand for labor will decrease more when you have elastic demand than i..
Suppose we want to compare the effect of a tax cut in the economy given in the first problem to the effect of the same size tax cut on an economy with a MPC of 0.8. If everything else about these two economies is the same (except for their MPCs),..
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