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1) Explain why a low unemployment rate does not necessarily mean the labor market is doing well. Explain why we also want to look at the labor force participation rate.
2) Explain why real GDP is more useful in tracking economic growth than nominal GDP. Make sure you explain what GDP is trying to measure and what differentiates rGDP from nGDP.
3) Explain what is meant by “the purchasing power of money,” being sure to discuss how it relates to inflation.
A developer is considering including a private waste water treatment plant in a small residential development. The city requires the developer to provide funds to cover the construction cost of the plant and to cover the maintenance and operations co..
Graphically show and verbally argue that a Walrasian equiblirium in an economy is Pareto efficient as long as preferences are locally non-satiated. How about convexity? ?s it important for this theorem to hold ?
If aliens come and take a large percentage of our cows what happens in the market for synthetic leather baseball gloves?
Suppose a particular labour market were in market-clearing equilibrium. What could happen to cause equilibrium wage to fall. If all money wages rose with inflation each year, how would real wages in this market adjust.
Illustrate what is the next best thing to sliced bread in your product or is your product the next best thing.
q. the gop deflator in econoland is 200 on january 1 2005. the deflator rises to 242 by january 1 2007 and to 266.2 by
Suppose you are holding a 5 percent coupon bond maturing in one year with a yield to maturity of 15 percent . If the interest rate on one year bonds rises from 15 percent to 20 percent over the course of the year what is the yearly return on the bond..
An industrial machine costing $14,000 will produce net cash savings of $5,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years of operation. These repairs cost $5,000. The compa..
Consider the following statement. "Winter ice storms that sometimes hit Chicago are good for the economy. They create many jobs to remove downed limbs and replace trees and bushes." Do you agree that ice storms are a net benefit to the economy? To an..
Maturity Risk Premium The real risk-free rate is 2.25%, and inflation is expected to be 3.75% for the next 2 years. A 2-year Treasury security yields 9.75%. What is the maturity risk premium for the 2-year security?
Considers a consumer who suddenly changes her preferences with regard to air travel,
Based on costs and revenues above, which should you do. Elucidate and show any relevant calculations.
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