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1. A hotel owner, having heard that new hotels plan to open in his area, says, "we have too many hotels in this town already. Statistics show that vacancy rates average 20 percent on any given night." Assuming this is correct, evaluate his negative assessment of the situation in terms of business-stealing and product-variety externalities.
2. Explain the theory that education acts as a signaling device' How does this contrast to the theory of education as an investment in human capital?
3. Explain the difference between inferior goods and normal goods' As a developing economy experiences increases in income (measured by GDP), what do you predict will happen to the demand for inferior goods?
Suppose a foreign investor who holds tax-exempt Eurobonds paying 9% is considering investing in an equivalent-risk domestic bond in a country with a 28% withholding tax on interest paid to foreigners. If 9% after-tax is the investor's required return..
Identify two elastic and two inelastic goods that you have purchased in the last month and explain the main reason why you identified them as such.
In general, large current account deficits have to finance by:
The import tariffs that President Bush placed on imported steel likely had what effect?
An Inventory Management System in the food industry.
If the prices of gold and other commodities increases how will this influence the value of rand. Explain how will a depreciation of the rand influence our exports and imports.
Advise the firm on how to plan production in the coming month if average income is set to increase by 12%.
Elucidate the balance sheet balances if these are the only assets and liabilities. Supposing that the people hold no currency, what happens to each of these values.
suppose there are two diners. What will they order (at a Nash equilibrium)? b)suppose there are four diners. What will they order (at a Nash equilibrium)?
The price of oranges has risen dramatically. Which of the following is likely to happen?
Stores that sell wedding dresses do not typically permit photos, and do not have tags in the dresses that would identify the manufacturer and style type. What is the purpose of these rules? Suggest one other way of accomplishing the same objective.
Each of the estimated coefficients statistically significant at the 95 per cent confidence interval. What is the optimal output level.
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