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For Week 6 you will find two topics. Select one topic, then post and concisely defend your view. You may post to both topics, but are required to only select one for your initial post. Be careful to identify the positive reasons for your normative position. Read and respond to your fellow student's postings at will. The topics to choose from are:
Note: A post that merely recites an example without offering economic analysis or responding to the questions assigned, garners few point.
What are the strengths and weaknesses of game theory? What are its underlying assumptions? Devise a situation/scenario from your work (or another company in which you are familiar) in which game theory is immediately applicable. Sketch out its specif..
On February 1, the Miro Company needs to purchase some office equipment. The company is short of cash and expects to be short for several months. The treasurer has said that he could pay for the equipment as follows.
How do managed floating exchange rates operate Why were they adopted by the industrialized nations in 1973 Has the abandonment of the Bretton Woods system of adjustable pegged exchange rates been beneficial or detrimental to global financial stabi..
Use the Keynesian-cross model to illustrate graphically the impact of an increase in taxes on the equilibrium level of income.
The European governments wanted to keep a 2% per year inflation rate. The inflation rate based on CPI is 0% indicating that the goal has not being reached, but the inflation rate based on GDP deflator is 2% which is already the targeted inflation rat..
The following graph shows the daily market for jeans when the tax on sellers is set at $0 per pair. Suppose the government institutes a tax of $5.80 per pair, to be paid by the seller. (Hint: To see the impact of the tax, enter the value of the tax i..
q1. dynamic rather than static demand and supply conditions are typically observed in markets of real world. hence
According to data provided by British Rail to the Mergers and Monopolies Commission, the 1988 costs of a Sprinter (Class 150/2) train were: Capital Cost 525,000, Annual costs (per unit): Depreciation 26,300, Overhaul and maintenance 32,600, Stabling ..
An industry contains two ?rms, one whose cost function is C(q1) = 30q1 and another whose cost function is C(q2) = q2 2. The inverse demand function for the ?rms’ output is P = 120 − Q, where Q is the total output. What are the ?rms’ outputs in a Nash..
How is the PCE calculated? What is the difference between the PCE and the GDP deflator? What is the difference between the PCE and the core PCE?
Explain the problem of time lags in enacting and applying fiscal policy. What is the difference between the national debt and a budget deficit? How does the crowding-out effect relate to fiscal policy?
A water utility for a growing city is considering expanding their capacity by investing in a larger system of wells. Their long-run marginal cost of water provision is characterized by the function MC(q) = 5 + (2/3)(q) (q is in thousands of gallons)...
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