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Production Possibility Cure Exercises
Show each of the following events through a production possibility frontier graph, and analyze what the effects of it were on economic growth:
The effects of the Baby Boom-the sharp increases in the birth rates in the U.S. from 1946 to 1964-on the U.S. economy in the 1970s and 1980s.
The effects on the development and diffusion of computer technology in the 1970s and 1980s on the U.S. economy in the late 1990s to the present.
The effects of the decline in public investment in the U.S. over the last 20 years or so on the U.S. economy in the future.
The effects of the Baby Boom on the U.S. economy in the years 2011 to 2029.
Explain and discuss the mechanisms by which this has occurred, and contrast our experience with: a) the recent performance of many NICs (newly-industrializing-countries) in the last few decades
Describe how globalization impacts the capital budgeting decisions of multinational firms? Be sure to carefully explain your reasoning.
Suppose that the airplane can be purchased from an outside supplier. What is the relevant unit cost for this make-or-buy decision.
Describe arbitrage and the law of one price. What role do they play in a market-based system. What do we call the 'one price' of an asset.
Give three reasons why firms produce in Germany rather than in a lower-wage country.
Dilomatic tensions over the war with Iraq also patriotic fervor led the state legislature in South Carolina to initiate a resolution boycotting French products.
Dairy farm Industry a small producer of milk and cheese, has estimated the quantities of milk.
You are told to produce a quantity that maximizes profit. How many units do you produce and what is your profit? How many machine and labour hours are used in production?
Explain how does each of the following affect the aggregate demand curve?
Evaluate the range of marginal revenues
Write down his budget constraint and a utility function that captures his preferences. Draw his budget constraint and three of his indifference curves.
What is real mortgage interest rate in 2001, 2002, 2003 and 2004? What are the values in 2000 dollars of the Nancy's monthly mortgage payments in the year of 2001, 2002, 2003, and 2004?
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