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Project 2 will consist of an application of the theory of comparative advantage as augmented by endowment theory. In your report, consider the economic inventory of the USA and use that inventory to predict the top 3 items the country is likely to export. Should the exports be labor or capital intensive? Why? Conclude your report with an empirical test of your hypothesis. What are the top 3 exports of the USA. Are they labor or capital intensive at all? Did this information match your prediction? The document should be doubled-spaced, and should be between 800-1000 words of core content (approximately 3-4 pages, excluding title page and references.)
Suppose that an economy’s production function is cobb-douglass with CRS(Y=AK^α * L^1-α ) and α=.3. What fractions of income do capital and labor receive? Suppose that the capital stock decreases by 15 percent. How much does output increase or decreas..
In the recent past, small business lenders (for example 'biz2credit', 'kabbage', 'CANCapital', and 'LendingClub') have become popular. Their major function is to provide loans to small businesses to carry on the day-to-day business operations. Why ar..
The tuition's and fees for any given institution of higher education are theoretically the same for all attending students. Colleges and universities, however, routinely charge different tuitions and fees to different students. These differences show..
What is the different between quantitative easing and inflation? And how can they be explained using the graph of demand V.S supply?
Assume that raising the marginal income tax rate raises $200B which could be spent on infrastructure projects. Explain how would we measure the cost of the project to determine whether it is worth undertaking.
A monopolist operates at the minimum point of her ATC curve
Assume in the retail-trade industry, unionized workers earn 19.0% more than non-unionized workers do. Briefly explain how the “product market” effect may operate in this industry. If the product market effect were large, would that suggest that the 1..
This assumption implies that armed conflict can be a necessary prelude to a negotiated settlement of a newly arisen dispute. What about breakdown of existing agreements to settle territorial disputes peacefully.
When moving up along the production function, the marginal product of capital will:
Some central bankers have looked at asset prices, such as prices of stocks, to guide monetary policy. The idea is that if stock prices begin to rise, it might signal future inflation or an overheated economy. Are there any dangers to using the stock ..
A coal-fired power plant can produce electricity at a variable cost of $0.07 per kilowatt-hour when running at its full capacity of 30 megawatts per hour, $0.16 per kilowatt-hour when running at 20 megawatts per hour, and $0.24 per kilowatt-hour when..
How should the IMF (international monetary fund) operate? Why is the topic of interest to you in this course? How do you want to answer the question or issue you are pursuing?
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