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You should be able to explain the "crowding out" effect and how this effect might be the result of some specific stimulus to the economy such as a rapid increase in federal government expenditures (assuming the economy is at full employment). In the current U.S. economy, could you imagine a set of conditions where increased federal government spending actually caused private investment spending to rise (not fall)? Explain with an example, how this "crowding in" might occur.
What are the two primary factors that influence a firm manager's choice between a labor intensive and a capital intensive method of production Explain how a manager should make his or her choice in selecting the amounts of labor and capital to use..
Suppose that a car dealership wishes to see if efficiency wages will help improve its salespeople's productivity. Currently, each salesperson sells an average of one car per day while being paid $20 per hour for an eight-hour day.
What motivated the producers of all the individual products in the store to make them and offer them for sale? How did the producers decide on the best combinations of resources to use Who made those resources available, and why
Suppose that a risk-free investment will make three future payments of $100 in one year, $100 in two years, and $100 in three years.
Spending $1,500 more today for a hybrid engine rather than a gasoline engine will result in annual fuel savings of $300. How many years must this savings continue in order to justify the extra investment if money is worth 10% per year, compounded ..
karls preferences over hamburger (h) and beer (b) are described by the utility function U(h,b)=min(2h,3b). his monthly income is M dollars and he only buys these two goods out of his income. denote the price of hamburgers by Ph and beer by Pb.
Explain what is the Ricardian model for international trade. In your explanation
find the following article imf sees uae gdp growth slowing to 2.3 pct in 20121.summarize the articles with your own
The importance of FDI for economic growth of developing countries in 21st century. The case of Kaz
Illustrate the extended form game of the two-period, two-firm game. Describe the second-period pricing for the case in which the first-period product is nondurable and durable. Identify the first period durability choice. Calculate the social-welfare..
Life has become yet more complicated. Government spending works with a distributed lag. Now when $1 billion is spent today, GDP increases by $1 billion this period and $1.5 billion next period. a. What happens to the path of GDP if government spe..
The monopolist has a constant marginal and average total cost of $50 per unit. Find the monopolist’s profit – maximizing output and price.
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