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The estimate of the natural rate of unemployment shows an increasing trend during the 1970s and the early 1980s, and a declining trend in the 1990s. One of the explanations of this change in the natural rate of unemployment is based on the demographic pattern in the U.S. How does the demographic pattern affect the natural rate of unemployment?
Economists argue about the potential benefits and costs of diversification. For instance, while diversification can certainly help company to promote new products, at the same time through the merger of two firms it can be more expensive to develop c..
The wage in Mexico is $5. The wage in the U.S. is $20. Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500.
Illustrate what makes measuring economies of localization or economies of urbanization difficult.
Consider the example of the rancher (R) and the farmer (F). As in class, the cattle will cause $100 damage to F’s crops, if left unchecked. It would cost R $75 to fence his range, and it would cost F $50 to fence her field. transaction costs are high..
During the mortgage crisis the destabilizing effects of defaulting mortgages quickly spread throughout the financial system because those mortgages were involved in widespread securitization. What is securitization?
Suppose that natural real output in the country of Eudemonia grows at a steady rate of 3 percent per year. In the past, velocity has been approximately constant, and the Eudemonia Central Bank has maintained a target rate of growth of 4 percent per y..
A company is considering the installation of a new machine that costs $150,000. The machine is expected to lead to new net income of $40,000 per year for the next five years. Using SL depreciation, $0 salvage value, and an effective income tax rate o..
When two countires share similar time orentation values, Like the US and Portugal, what would this mean for international tourissm between the two countires in the future? Would it increase or decrease or stay the same, and WHY?
flexibility in the sequence in which products are produced using these functions. Millwood's new layout is an example of the fixed-position layout.
Be a “two-handed economist” and, In approximately ONE typed page (single-spaced), please explore ONE of the following issues using the concepts and materials from the course. Economic growth is more than important for solving global environmental pro..
Suppose the marginal costs of pollution reduction are unknown and the government is choosing between regulating the quantity of pollution directly or taxing pollution. “If the marginal benefit from pollution reduction is elastic (flat), it is better ..
assume which the benefit to the villagers of each additional cow grazing on the commons declines as more cows graze, since each additional cow has less grass to eat than the previous one.
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