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Q1. Consider the electoral competition model with three candidates we saw in Lecture 3. Extend the model to incorporate that candidates not only care about oce but also about the policy that is implemented. You can assume any single-peaked preference you want. Differentiate the equilibria of model. Also the classification should be a function of the bliss point of the candidates.
Q2. Your firm has $45.0 million invested in accounts receivable, which is 90 days of net revenues. If this value could be reduced to 50 days, what annual increase in income would your firm realize if the increase in cash could be invested at 7.5 percent?
Limited partnership arrangements alleviate which traditional problem associated with real estate investments.
Given your understanding of bond markets, what signals is the the bond market sending in response to the downgrade. Is this problematic.
Changes in disposable income affect government purchases and the government purchase function. How do changes in net taxes affect the consumption function.
George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John grew 200 bunches of bananas.
Firms raise capital from investors by issuing shares in the primary markets
How would you use these cost and revenue estimates to determine whether a sales force increase or possibly a decrease is warranted.
What happens to the demand for Sara's sweatshirts in long run. In long run, what happens to Sara's economic profit.
What are the annual accounting costs for the firm described above? What are the annual explicit costs for the firm described above?
Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
Find Equilibrium GDP (Y). If potential GDP is 1950, is the economy in a recessionary or inflationary gap. Suppose that the MPC, falls to 0.75, so C = 0.85DI. Find Equilibrium GDP.
Represent graphically the effects of an expansionary monetary policy and a contraction fiscal policy in the IS/LM/FX model.
A county is considering using a piece of park land for one of two alternative recreation projects.
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