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You are the manager of copies are us. The only copy store in town, the carbon copy, recently got bids on adding a colour copier. You must decide whether to obtain a colour copier, but you can base decision on what your rival does. If your rival adds a colour copier and you don't you expect your profits to fall by $1,000 per week, However, if you both do the same thing (add colour copies or not), you each expect profits to stay at their current level. Show the extensive form of this game, and find the Nash equilibrium (or equilibrium). Is there a sub-game perfect equilibrium?
Make an example of a comparative advantage model by 'choosing two countries and two products.
A tariff I ssimply a tax on imports. Use our model of the excise tax (with diagram) to expain why domistic firms request that tariff? Consider both the domestic and the foreign country in your answer
Taxi fares in New York recently were increased by nearly 50%. Predict the effect on the price of taxicab medallions, the earnings of taxicab drivers and congestion in New York streets.
What is the inflation rate in Home? In Foreign? What is the rate of change in the nominal exchange rate? Which currency is expected to appreciate? At what rate? Explain.
The Mor Tex Company assembles Garments by hand even though a textile machine exists that can assemble garments faster than a human.
Briefly accounting describe two limitations of national income. On the basis of these data calculate GDP, GNP, NDP, NI, PI, and disposable personal income.
Answer whether the following statements are true or false, explaining your answer in each case.
Explain how the aggregate expenditure function shifts in response to changes in each of the following variables:
In article on the steel industry, The Wall Street Journal noted that as steel prices were falling, steelmakers were not cutting production
In national income accounting identity showing the equality between national saving and investment, what is the representation of private saving and what is the representation of public saving?
What are primarily intended to address the problem of insuring people who do not have health insurance? Would a public national health insurance system reduce total spending on health care in our economy?
What is the growth rate of nominal GDP in the economy?An adverse supply shock raises the inflation rate associated with every output ratio by 3 percentage points. Draw the new short-run Phillips Curve.
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