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Discuss the Becker-Murphy model of residential sorting. Be sure to explain the basic assumptions of the model. Under what circumstances is a neighborhood in equilibrium? Under what circumstances is a neighborhood stable?
As the Euro appreciates in value relative to the U.S. dollar, what happens to the price of U.S. goods in Europe. Elucidate what happens to the price of European goods in the U.S.
Suppose a closed economy decides to lower taxes (assume Ricardian equivalence does not hold), all else held constant. What will happen to savings, investment, and the interest rate? Show graphically what happens (be sure to label curves, axes, equili..
Assuming no government intervention, describe the market behavior that should result if the price of a product is below its equilibrium price; then describe the behavior that should occur if the price is above its equilibrium price.
A new tax on airline tickets has raised concerns the European airline traffic will fail. Show the effect on airline ticket prices and quantity demanded. Show the shift of supply and/or demand curves and explain why the curve(s) shifted.
Assuming that this is rational behaviour by profit-maximizing "firms" elucidate what economic factors may influence such behaviour.
Currently, the expectation is that the Federal Reserve will try to increase interest rates sometime later this year, while the European Central Bank will try to maintain low interest rates. What is the corresponding expectation of the future trajecto..
What do you understand Spencer and Kate are the only two demanders of lemonade.
increases the equilibrium GDP also the size of that increase varies directly with the size of the MPC
HOW can different investment vehicles affect the risk and returns of the pension fund? What are the pros and cons of using international investment vehicles, real estate, and alternative asset vehicles in a pension investment portfolio?
Compute the price elasticity of demand for subway rides. If the transit authority reduces the fare back to 50 cents, what impact would you expect on the ridership? Why?
Some of the most serious abuses taking place in developing countries deal with child labor, human slavery, sweatshops, bad governance, and environmental degradation. Select one (1) developing country, and examine the extent to which two (2) of these ..
Consider a product that has a cost function c(y) = 10y. What is a monopolist’s optimal production plan and price? What would the equilibrium price and output be under perfect competition? what is the deadweight loss from the monopoly? (know how to so..
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