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What is the liquidity trap and why is it so dangerous? How does expected deflation set a floor on the real interest rate that the Fed can set? Why is fiscal policy crucial in a liquidity trap? What is meant by a deflationary spiral. Be able to use the AE-PC model to describe the effects of a liquidity trap.
What were the main characteristics of economic growth in Latin America from the end of World War II until the debt crisis of the 1980s? What is import substitution industrialization? Explain its goals and methods. What are the main criticisms of impo..
Consider a second price sealed bid auction. Throughout our discussion, we have assumed that bidders are risk-neutral. Suppose that bidders are risk-averse. Does it change our conclusion that bidding one’s own valuation truthfully is a weakly dominant..
The organization where you work is expanding into the global market by opening an office in China. What are some potential ethical and social issues that may arise as the company expands into this new area? Can these issues be avoided or mitigated?..
Assume that perfectly competitive firms are employing labor in profit-maximizing amounts. Now suppose that, all else being equal, the market supply of this labor increases. How will the firms respond? How will they know when to stop responding?
Elucidate how these tendencies lead to religion becoming evil, how does Kimball respond to them and how the Greek Orthodox tradition transcends them.
Describe the advantages and disadvantages of using taxes and bounties to regulate negative externalities. Describe the advantages and disadvantages of allowing individuals to sue to regulate negative externalities.
"In the last 5 years the largest source of government revenue has been from individuals and the largest single category of federal government spending has been on individuals." Do you agree? Why or why not? Be sure to provide, where possible, specifi..
Describe a market situation in which the operating company faces economic difficulties and the need to cut costs. What cost cutting strategies might the operating company use to remain profitable? What would be the benefits and drawbacks of each?
How interest rates, inflation rates and gross domestic product in France influence blades & razors market for men in France ? How unemployment rates and levels of disposable income in France make an impact on blades & razors market for men in France ..
Barney's Liquids and Aunt Bee's Lemonade plan to expand their international partnership for the marketing and distribution of ready-to-drink tea products by adding 12 countries to their current markets. If the agreement is reached, operations are exp..
Suppose a bank will pay you a 10% interest rate on your deposits for 1 period. In this case you must sacrifice $10 of current consumption to finance. One thousand dollars given to you a year from now is worth __________ to you today if the relevant d..
Find a symmetric Nash equilibrium to this game. That is, what number is a best response to everyone else submitting the same number? Show that choosing the number 5 is a dominated strategy. What are all of the dominated strategies?
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