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1. It has been said that if government wishes to tax certain goods, it should tax goods that have inelastic rather than elastic demand. What is the rationale for this? Give examples and elaborate your arguments.
2. How does having a menu that is uniform around the country provide McDonald’s with economies of scale? Why is menu planning made more complex by expanding into other countries?
3. Define “market structure.” What factors are considered in determining the market structure of a particular industry?
4. The Big Mac Price Index computed by the Economist has consistently found the U.S. dollar to be undervalued against some currencies and overvalued against others, which seems to call for a rejection of the purchasing power parity theory.Explain why the index may not be a valid test of the theory.
Term Project: Weekly Journal Portfolio (20%): You are required to maintain a weekly journal in APA format. Once a week, you have to pick an interesting story dealing with international business from the print/internet media. What did you learn from i..
q.assume the production function of the company isq 7v - 0.5v2where q is the production and v is the number of
q1. tanisha owns one share of ibm stock which is currently trading at 80. there is a 50 chance that the share price
After cyclone Larry banana prices soared as high as $15 a kilogram, against pre-cyclone prices of closer to $2 or $3 a kilo. Explain graphically why banana prices went up after the cyclone
Suppose the market supply in a Perfectly Competitive market reflects a constant marginal cost. Assuming the market demand is the usual downward-sloping variety (and linear), what value (i.e., a specific number) is the total Producer Surplus in the ma..
The function for the net exports is NX=200-100e, where e, is the exchange rate, and the exchange rate is initially 1.0.
Over the past decade, new computer technology has enabled firms to reduce substantially the amount of inventories they hold for each dollar of sales. Illustrate the effect of this change on the market for loan able funds.
You know that when expanding and investing in projects overseas as Acme plans to, it is essential to understand such things as return on equity (ROE)and internal rate of return (IRR). Using Internet sources (you may want to start with the Web sites l..
Classify the following Wall Street Journal articles as involving macroeconomic or microeconomic issues based on their titles:
Suppose that the government of a nation who's producers export coffee burns one-third of all the coffee fields before they can be harvested. Explain the impact of this action on the global price and quantity of coffee. Consider the question above. Ca..
Let the consumption function depend positively on disposable income and negatively on the interest rate. Provide the economic intuition behind this assumption. Draw a IS/LM graph with the normal IS curve as well as the IS curve with this modified con..
A continuous annuity with withdrawal rate N = $1,800/year and interest rate r = 2% is funded by an initial deposit P0. When will the annuity run out of funds if P0=$89,000? The annuity runs out after approximately__ years. Answer to the nearest whole..
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