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Supply factors for Economic Growth, Demand & Efficiency
What are the four supply factors of economic growth? What is the demand factor? What is the efficiency factor? Illustrate these factors in terms of the production possibilities curve.
Expalin how are the current real stock of money in the U.S. and real interest rates computed.
Discuss how the requirement of a goods and the availability of substitutions impact price elasticity.
You are the manager of a local sporting goods store. Given the reservation prices, determine your optimal bundle pricing strategy.
It is given an offer to split, if you accept this offer you keep the $1, and the other player keeps $19.
Illustrate what should the Fed do in inflation continues to fall and eventually starts to become deflation.
Discuss the limitations of this model as an explanation of the effects of government expenditure on GDP.
Assume that a employee's skills can be summarized by the number of efficiency units she owns and the distribution of efficiency units in the population
Assume the government decides to pass a law that requires all businesses to delay all future layoffs, giving at least 3 months notice to any workers they plan to lay off.
Explain how could the advertising be employed to allow KinderCare to keep price above average cost without encouraging the entry.
Find the optimal (profit maximizing or cost minimizing) output of each firm. Find the price that each firm charges at the when producing the optimal output.
Explain is low stable inflation also deflation better for the economy.
Compute the elasticity of demand in going from 2 unit to 3 units. Is the demand elastic or inelastic in this range.
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