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Your economics professor assigns a group project for the course. Describe the free-rider problem that can lead to a suboptimal outcome for your group. To combat this problem, the instructor asks you to evaluate the contribution of your peers in a confidential report. Will this evaluation have the desired effects?
Suppose for an economic activity, your total benet and total cost functions are B (x ) = 654x - 40x2 and C (x ) = 110x +120x2 , respectively. The corresponding marginal formulas will be MB (x ) = 654 - 80x and MC (x ) = 110 + 240x . What is your best..
1) Why is it possible to change real economic factors in the short run simply by printing and distributing more money? 2) Explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 1-7% regularly.
What is the equilibrium price when the equilibrium quantity demanded in the market is 60 units? Calculate the demand elasticity (using the averaging formula) when the price drops by $1 from that equilibrium.
How do political, legal, and economic forces shape national culture? What characteristics of national culture do you think have the most important effect on how successful a country is in doing business abroad?
You are thinking about becoming a Paradise Coffee franchisee. Franchisees are offered a business specializing in producing an exclusive line of exotic coffee drinks (similar to Starbucks). What is the estimated explicit (accounting) cost of your prop..
In an effort to reduce education expenditures, Delware shuts down two of the five colleges that train nurses. Using the traditional supply and demand model, discuss the effects of the budget cut on three markets: the markets for nurse schooling (tuit..
What are the issues related to exchange rates - their impact on national economies when they change, their different equilibrium concepts (PPP and IP), how governments manage them (fixed or flexible or in-between)?
If the marginal product of the 4th worker hired is 6, and the marginal product of the 5th worker hired is 4, you should not hire the 5th worker because your profit would decrease since the 5th worker’s marginal product is less than the marginal produ..
China has emerged as one of the fastest growing and most significant trading partners for the US. How does growth in China impact welfare in the US? Under what circumstances is Chinese growth good for US welfare and under what circumstances is US wel..
Management in a Foreign Country Research business
The scores of all applicants taking an aptitude test required by a law school follow a normal distribution with mean 420 and standard deviation 100. What is the probability that a randomly selected applicant will achieve a score of more than 450? Wha..
Illustrate what are some of the limitations of the national income accounts in how they represent our standard of living.
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